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C7 ee Pn) eve AS LN 


A Survey of Economic and Social Conditions 


THE MACMILLAN COMPANY 


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ay 


yi, 
CZECHOS LOV AX FA® * 
Sosiont sen? 
A Survey of Economic and Social Conditions 


EDITED B 
DR. JOSEF “GRUBER 


PROFESSOR OF ECONOMICS AT THE CHARLES UNIVERSITY 
IN PRAGUE 


Translated from Czech Manuscripts 
by 
A. BROZ, S. V. KLIMA anp J. J. KRAL 


jQew Mork 
THE MACMILLAN COMPANY 
1924 


All rights reserved 


Copyricut, 1924, 
By THE MACMILLAN COMPANY. 





Published September, 1924. 


PRINTED IN THE UNITED STATES OF AMERICA, 


INTRODUCTORY NOTES ON 
THE PRESENT SOCIAL AND INDUSTRIAL 
CONDITIONS 


Dr. VACLAV VERUNAC, DIRECTOR OF THE INSTITUTE FOR INDUSTRIAL 
Economics, MAsAaryk’s ACADEMY OF LABoR, PRAGUE 


The political upheaval of October 28, 1918, through 
which Czechoslovakia was established as an inde- 
pendent State, may not mark the inauguration of a 
new era in the economic and social life of the country, 
yet an important beginning has been made toward a 
readjustment of the war conditions in conformity with 
the new political state of affairs After the establish- 
ment of the Czechoslovak Republic the effect of the 
abnormal conditions prevailing during the war was 
felt in an increased measure, especially in wages, 
prices, and general social conditions. The misery and 
exhaustion of the masses, the weakened ties of morality 
on the one hand, and the increased materialism on the 
other, all these prepared the ground for the revolu- 
tionary ideas which had been preached at various 
periods in the neighboring countries of Russia, Hun- 
gary, Germany and Austria. Thanks to the sound 
common sense of Czech workmen and to their 
nationalist feeling, the communist agitators have not 
succeeded in winning the Czech workmen for their 
extreme demands, or at least not to the same extent as 
in the neighboring countries. The influence of the 

Vv 


vi CZECHOSLOVAKIA 


Russian social revolution was felt acutely, as is 
quite natural in the present intercourse of nations, and 
did not remain without effect on the social and the 
labor questions, but was never strong enough to shake 
the economic structure of the State. The spirit of 
enterprise was, of course, to a certain extent weakened, 
but the political consolidation and the authority of the 
government made steady progress, so that at present 
the State is fairly well consolidated. 

The Czechoslovak Republic has taken over the 
greater part of the industries of the former Hapsburg 
Monarchy, although its territory represents only 22 
per cent and its population 26 per cent of that of the 
defunct Empire. The industries taken over include 
92 per cent of the sugar factories, 65 per cent of the 
breweries, 95 per cent of the malt factories, 50 per 
cent of the liquor industry, 90 per cent of the glass 
industry, 70 per cent of the leather industry, and the 
greater part of the textile industry, the latter employ- 
ing about 270,000 workmen. 

The various branches of the textile industry are 
distributed as follows: 

(a) The cotton industry in Austria-Hungary com- 
prised 4,941,000 spindles, of which 3,565,000 spin- 
dles, or nearly 75 per cent, remained in Czecho- 
slovakia. There are in Czechoslovakia 130,000 me- 
chanical looms, or about 90 per cent of the number 
of mechanical looms in the former monarchy. Be- 
sides this, there are 20 to 30 thousand hand-looms. 
Of the 220 pattern-printing machines of the former 
monarchy, 170 are now in Czechoslovakia. 

(b) The woolen industry comprises 92 per cent of 


INTRODUCTORY NOTES vii 


the looms and 65 per cent of the spindles for carded 
yarn and 74 per cent of the spindles for worsted yarn, 
of the former monarchy. This proportion represents 
about 34,000 looms and 800,000 spindles for carded 
yarn and 400,000 spindles for worsted yarn. For the 
full employment of this industry about 31,000 tons of 
wool are required. Asa sheep will give about 2 kilo- 
grams of wool-annually, the home supply in I919 
amounted to about I,440 tons of raw wool, 1.e., about 
4.6 per cent of the home consumption. 

(c) The flax industry comprises 26 spinning mills 
with 284,793 spindles, that is, 97 per cent of all the 
spindles of the former monarchy, and 140 weaving 
mills with 11,000 mechanical and 5,690 hand looms. 

(d) The jute industry comprises 9 spinning mills 
with 34,844 spindles which consume 40,000 tons of 
jute annually. These spinning mills are run in con- 
nection with weaving mills having 1,700 looms; there 
are also I1 independent weaving mills with 1,880 
looms, so that the jute industry comprises altogether 
3,580 looms, 

(e) The silk industry comprises 53 mills and 14,000 
looms. 

Czechoslovakia has also taken over about 75 per cent 
of the Austro-Hungarian chemical industry, 70 per cent 
of the paper industry, and 80 per cent of the building 
and the ceramic industries. 

In 1915 Austria had 282 coal mines of which 2109, 
or 79 per cent, were situated in the Bohemian terri- 
tories. The total output in 1915 amounted to 38,353,- 
628 metric tons, of which 16,289,793 metric tons was 
bituminous coal and 22,063,835 metric tons lignite or 


viii CZECHOSLOVAKIA 


brown coal. Of this total output Bohemia, Moravia 
and Silesia produced 14,464,432 metric tons of bitu- 
minous coal and 18,148,528 metric tons of lignite, a 
total of 32,614,960 metric tons, or 85 per cent of the 
total output of coal in former Austria-Hungary. 

In 1915, 105,958 miners were employed, of whom 
81,816, 1.e., 72 per cent, were in the Czech territories. 
In 1921 the number of mining concerns increased from 
365 to 369 and the number of miners to 127,000. 

This short survey of the principal Czechoslovak in- 
dustries shows clearly that Czechoslovakia is an export- 
ing State par excellence and needs foreign markets. 
Hence the demand of Czechoslovak manufacturers for 
the removal of all obstacles standing in the way of free 
trade. 

Out of the thirteen and a half million of Czecho- 
slovakia’s inhabitants two and a quarter million are 
actively employed in the mining and the manufacturing 
industries and two and a half million in agriculture. 

According to the reports of the State Statistical 
Bureau (Nos. 6 and 31, 1923), the number of persons 
engaged in agriculture and industry in 1921 was as 
follows: 


Agriculture Industry 

Bohémiasn ich sn cee 961,339 1,367,671 
Moravia and Silesia ..... 560,207 593,204 
mlOvakiawe ok ccciree aetene 751,155 227.220 
‘Carpathian Ruthenia .... 152,267 24,287 
LO tal ouswe adie aac ie 2,424,968 2,212,472 


Politically, the Czechoslovak workmen are organ- 
ized chiefly in the socialist parties. The trade unions 
are affiliated with two central bodies: the Federation 


INTRODUCTORY NOTES ix 


of Czechoslovak Trade Unions, with 675,625 members, 
and the Czechoslovak Labor Community, with 298,117 
members at the end of 1921. Beside these two asso- 
ciations there is a Federation of German Trade Unions, 
with 372,027 members, an Association of Christian 
workers with 72,544 members, and several smaller 
groups of organized labor. 

The organizations of the employers are associated 
in the Central Federation of Czechoslovak Manufac- 
turers and in the Federation of German Manufactur- 
ers. Recently there has been established a Confedera- 
tion of Employers’ Organizations, including manu- 
facturers, merchants, bankers, and farmers. A similar 
institution is the Central Committee of the Czecho- 
slovak Industries. 

The relations between employers and employees are, 
on the whole, satisfactory. Immediately after the war 
the differences between employers and workmen were, 
of course, far greater, but under the pressure of the 
prevailing industrial crisis both sides have learned the 
value of cooperation, and industrial disputes have been 
reduced to a minimum. The year 1919 and the first 
half of 1920 mark the end of the abnormal postwar 
period which was characterized by a rapid increase of 
prices and wages, by constant wage disputes, by com- 
plaints of coal shortage, diminished productivity, ete. 
The second half of 1920, however, marks the com- 
plete liquidation of war conditions. The stabilization of 
the Czechoslovak crown made possible the stabilization 
of wages and prices also, and the foreign trade was 
freed from the uncertainties of calculation. 

As a result of the depreciation of the crown, wages 


x CZECHOSLOVAKIA 


in various industries had increased from 1913 to 1920 
as follows: 

In the chemical industries, 500 per cent; in the 
clothing industries, 900 per cent; in the textile, paper, 
and leather industries, 900 to 1000 per cent; in the 
food industries, 1000 per cent; in the furniture indus- 
try, 1100 per cent; in the iron, building, and other 
industries, 1000 to 1300 per cent. 

The prices of foodstuffs and other necessaries in- 
creased 1384 per cent in the same period. 

The index numbers of the State Statistical Bureau 
for 1921 and 1922 show the following movement of 
retail prices since 1913 (July, 1914, prices = 100): 


1921 
Jan. Feb. March April May June 
I. Foodstuffs, fuel, oil, 


and sOapdecneees 1643 1404 1423 1450 1456 1445 
II. Clothes, footwear, 
batecnie pects. 2878 2803 2566 2349 2137 1808 


‘ July: Auge. Sept. 52 Oct? Nov? © Dec, 
I. Foodstuffs, feul, oil, 


ANCE GOAL Mein eta: 1340/%5302) 1470 P1510 15S) 31544 
II. Clothes, footwear, 
hats Sie ea vie 1865 1877 2019 2086 2087 2052 
1922 


: Jan. Feb. March June Aug. Sept. 
I. Foodstuffs, fuel, oil, 


ANUESOaU peewee 1444 1461 1414 1475 1290 I105 
II. Clothes, footwear, 
hats. #6 Haun eee eee 2053 1960 1882 1736 1614 1409 


During the war, a so-called “social wage” was intro- 
duced, a wage increasing according to the number of 
the members of a family. In the mining industry such 


INTRODUCTORY NOTES xi 


social bonuses amounted to from 14 to 42 per cent of 
the basic wage. After the war the “social wage,” based 
upon the number of the members of a family and not 
on the skill of the worker, was gradually abolished. 
With the steady increase in the buying power of the 
crown since the beginning of 1922 a gradual reduction 
of wages has taken place. This reduction varies from 
IO to 20 per cent. 

Owing to various causes, the output per workman 
declined after the war, but has regained the prewar 
standard since 1922. The effect of the eight-hour 
working day on the output has not yet been ascertained. 

Working conditions, so far as not determined by 
the law, are regulated by contracts between employers 
and the labor unions. Both employers and employees 
have recognized the advantages of contracts, and the 
working conditions in nearly all branches of the in- 
dustry are now regulated by agreements. 

Immediately after the war, especially in 1919, wage 
disputes were very frequent, but have subsided con- 
siderably since and, were it not for the political agita- 
tion of certain radical elements, the number of wage 
disputes would be still smaller. Industrial arbitration 
courts established after the war have in many cases 
succeeded in bringing about industrial peace. In nearly 
all factories the workmen are represented by delegates 
in all negotiations with the employers. 

Owing to the general European economic crisis, the 
industrial activity of Czechoslovakia, too, had to be 
considerably reduced. In the years 1921 and 1922 the 
activity in the various branches of industry was as 
follows: 


xii CZECHOSLOVAKIA 


Sugar production on the whole was highly satisfac- 
tory. Nearly 723,000 tons of sugar was produced in 
1920-21 and 663,000 tons in 1921-22. Sugar is one 
of the chief export articles. The chemical industries 
suffered through lack of markets and their output 
amounted only to about 50 per cent of the prewar 
production. 

Work in the building industries in 192I was car- 
ried on to about one-fifth of the normal extent. 

In the porcelain industry there was a great activity 
in the first two years following the war but since the 
rise of the Czechoslovak crown there has been a marked 
decline in the exports. 

In the glass industry about 40,000 workmen are em- 
ployed. The exports of glass and glassware in 1920 
amounted to three billion Czechoslovak crowns, and 
held the second place in the exports. Of the total out- 
put of this industry 80 to 90 per cent is exported. The 
exports to the neighboring countries were greatly 
reduced owing to the currency conditions but the indus- 
try is finding new markets and is steadily improving 
the quality of its products. 

The annual production of alcohol in the last four 
years amounted to 500 to 600 thousands hectoliters, 
representing about 30 per cent of the normal output. 
There are 965 agricultural distilleries and 60 industrial 
distilleries, yeast factories, and refineries. 

Activity in the brewing industry was below normal 
on account of the decrease of both domestic consump- 
tion and exports. 

Work in the leather industry was almost normal in 
1921, but since then there has been a decrease mostly on 


INTRODUCTORY NOTES xiii 


account of the causes operating in all industries. The 
greater part of the output is consumed at home and the 
rest exported, chiefly to Poland, Hungary, Austria, 
Yugoslavia and Rumania. 

Flour milling is carried on in more than 10,000 mills 
capable of grinding 17,300 tons of wheat or rye daily, 
1.€., 5,250,000 tons annually. For the needs of the 
home population 2,700,000 tons of wheat or rye are 
required, while the home production amounts to 2,100,- 
ooo tons. 

The prewar output of the paper industry was con- 
sumed at home to the extent of 75 per cent. However, 
as the majority of the factories of former Austria are 
now situated in Czechoslovak territory, the paper in- 
dustry can export as much as 60 per cent of its output. 
The raw material for this industry is found at home. 
It is more difficult, however, to find foreign markets, 
for, as in the case of other industries, the main cus- 
tomers had been Poland and Hungary, and these coun- 
tries are now suffering from the depreciation of their 
currencies, and are unable to buy. 

The textile industry suffered immediately after the 
war from a shortage of raw materials. .At present the 
supply of raw materials is normal, but, on the other 
hand, there are difficulties in finding foreign markets. 
Recent trade reports, however, indicate a noticeable 
improvement in this industry. 

In the engineering and the iron industries there was 
a great activity during and after the war, but in 1921 
stagnation set in. Of the twenty-seven blast furnaces 
in the territory of Czechoslovakia only eight are 
working at present. The engineering trades are well 


XIV CZECHOSLOVAKIA 


employed, large orders having been received from 
abroad. 

Work in the coal mines was carried on below the 
prewar extent chiefly on account of the prevailing in- 
dustrial crisis. Efforts to lower the cost of production 
and thus to reduce the price of coal have led to a gen- 
eral miners’ strike which lasted seven weeks, from 
August 20th to October 6th, 1923. The strike has been 
settled by an agreement reducing the wage rates by 
13 per cent. Asa result of this agreement the price of 
coal has been reduced about 20 per cent. 

In 1921 the unemployed in Czechoslovakia numbered 
95,000 of whom 45,000 were supported by the Gov- 
ernment. This was a great improvement over the year 
I919, when approximately 267,000 were supported by 
the State. At the beginning of 1922, and especially 
in the second half of 1922, the number of the 
unemployed increased considerably, owing to the 
prevailing industrial crisis. In January, 1922, the un- 
employed numbered 113,015; in February, 142,454; in 
March, 128,336; in June, 107,702, and in August, 150,- 
ooo. A year later, in August, 1923, the number of 
unemployed had declined to 61,438 and in September, 
1923, to 57,000. 

Social and industrial conditions in Slovakia were, 
on the establishment of the Republic, in a much more 
unsatisfactory state than in the Czech territories, for 
the Slovak workmen and Slovak industries were 
by no means so advanced as the Czech. There were 
many obstacles in the way of social and industrial con- 
solidation, but in spite of them a marked progress has 
been made. 


ERUDUCTORY NOEES XV 


The same may be said of Carpathian Ruthenia, 
where economic and social conditions have also greatly 
improved. Carpathian Ruthenia has a great lumber 
industry and several important iron factories and agri- 
cultural distilleries. 

The progress of the Czechoslovak Republic during 
the last five years may be briefly summarized as 
follows: The labor conditions in the industries have 
improved considerably in comparison with the con- 
ditions prevailing immediately after the war. The 
extreme radical elements have been routed and Utopian 
radical schemes have been abandoned excepting such 
really necessary social reforms as the old age pen- 
sions, social insurance, etc. Relations between em- 
ployers and employees are friendly. With respect to 
the general industrial activity, it is expected that a 
general improvement in trade will take place as soon 
as the increase in the exchange value of the Czecho- 
slovak crown has brought about a corresponding re- 
duction in wages and prices. It will be possible then 
to settle the questions of taxation and the tariff, and 
thus to clear the political sky at home. The great 
mineral wealth of the Republic, the available water 
power, and the skill of the workmen must also be taken 
into account in considering the economic and industrial 
possibilities of the Czechoslovak Republic which is now 
gradually becoming a stronghold of order in the 
European chaos of political and economic anomalies. 





CONTENTS 


INTRODUCTORY NOTES ON THE PRESENT SOCIAL 
AND..INDUSTRIAL CONDITIONS <0 .00% 


By Dr. VActav VeRUNAG, Director of the 
Institute for Industrial Economics, Mas- 


aryk’s Academy of Labor, Prague. 
CHAPTER 
LEE OPULATION MauitaniccMclaie Event tL cenas 


By Dr. AnTonfiN BoHAé, Councillor of the 
State Bureau of Statistics, Prague. 


II. AGRICULTURE Sih TOMAR WA Vina RATS SARL iy ha ae 


By Dr. VLADISLAV Broiik, Professor at the 
Czech High Technical School, Prague. 


PUP ORESTR Vice nue abr UNAM rae ou ce hh 


By Dr. Karet Siman, Councillor of the 
Ministry of Agriculture. 


IV. Lanp REFoRM . Ea ONS ARI Oh etn Ap Rd aa 


By AnToNin PAvEL, Secretary in the State 
Land Office, Prague. 


VIAL AY ig MeN ec RLS SRF tt, ICRA: Suara se! A St 


By Dr. JosepH Peters, Director of the 
Czechoslovak Mine Owners’ Association, 


ATT VATED OWERG. 0 Malet tet y hs, Pe: 


By Emit ZiMMtLeErR, Division Chief in the 
Ministry ef Public Works. 
XVii 


PAGE 


Vv 


12 


76 


XVili CONTENTS 


CHAPTER 

V LIC INDUSTRIES fet an een ar eee 
By Dr. Karet FrAnzz, Editor of “The 
Czechoslovak Compass,” Prague. 

VIII. Foreign TRADE . . abe 


By Dr. FRANTISEK Dee nen Division Chief 
in the Ministry of Commerce. 


IX. Tue COMMERCIAL AND THE CUSTOMS 
PoLicy Oe ee . Line 


By Dr. FRANTISEK Peart Division Chist 
in the Ministry of Commerce. 


X. RAILWAYS ai Be . Bt ENC EP 


By the late Dr. VicLAV eee former 
Minister of Railways, 


XI. THESPOSTAL SERVICE 


By the Czechoslovak Ministry of pects ted 
Telegraphs. 


ALA BANKING ae 3 Wakes 


By Karen Ke ite: of te Indus- 
trial and Agricult sural Bank of Bohemia, 
Prague. 


XIII. CurrENcy CONDITIONS . 


By Dr. Virrsatp MILpscHuH, Pir at 
the Charles University, Prague. 


XIV. GOVERNMENT FINANCE 


By Dr. Karet Encuis, Professor at Masa 
ryk’s University in Brno, Member of Parlia- 
ment, and former Minister of Finance. 


SOV. LABOR) LRGISUA TION eee : 


By Dr. Eucene Stern, Division Chief in 
the Ministry of Social Welfare. 


PAGE 


89 


I1o 


127 


138 


156 


166 


176 


192 


201 


CHAPTER 


XVI. 


XVII. 


XVIII. 


XIX. 


CONTENTS 


SociAL WELFARE PoLicy AS SHOWN IN 
THE ASSISTANCE TO THE UNEMPLOYED, 
THE CARE FOR THE WAR SUFFERERS AND 
SoctAL INSURANCE... ' 


By Dr. Jan BrABEC, in ts of fe Min- 
istry of Social Welfare. 


CHILD WELFARE 


By Dr. JARosLAv JANOVSKY, NS re in 
the Ministry of Social Welfare. 


Tue HousinGc QuESTION 


By Dr. Hynexk Kusista, Division Chief j in 
the Ministry of Social Welfare. 


CRIME 


By Dr. Rea Mrirexca, Drfeseat at ine 
Charles University, Prague. 


INDEX e e <) e @ e e ° e ° 


xX1x 


PAGE 


210 


220 


227 


239 


249 





CZECHOSLOVAKIA 
| I 


FORULATION 


Dr. ANTONIN BouAc, CouNCILLOR OF THE STATE BUREAU OF 
STATISTICS, PRAGUE 


The Czechoslovak Republic came into existence on 
October 28, 1918, after the collapse of the Austro- 
Hungarian Empire. It was formed of territory which 
formerly belonged to three states: Austria, Hungary, 
and Germany. The Czech lands, Bohemia, Moravia, 
and Silesia, were formerly part of Austria. By the 
Treaty of St. Germain, Bohemia was given eleven 
Lower Austrian parishes and Moravia five. Slovakia 
and the autonomous territory of Carpathian Ruthenia 
(Podkarpatska Rus) were parts of the former Hun- 
garian territories. By the Treaty of Versailles, Ger- 
many ceded a part of Prussian Silesia inhabited by 
Czechs, a district named Hlucinsko, which was united 
with Czechoslovak Silesia. Parts of eastern Silesia, 
the so-called Teschen, together with parts of the 
Orava and Spis counties in Slovakia, were given to 
Poland. 


I. AREA AND POPULATION 
The Czechoslovak Republic has an area of 140,485 
square kilometers (54,241 square miles) and, accord- 
I 


2 CZECHOSLOVAKIA 


ing to size, ranks fourteenth among the European 
states. The area is divided as follows: Bohemia, 
52,052; Moravia, 22,304; Silesia (with Hlucinsko), 
4,420; Slovakia, 49,015, and Ruthenia, 12,694 square 
kilometers. 

According to the census of February 15, 1921, the 
Republic had a population of 13,613,172, distributed 
as follows: 


Bohemia crate crete an 6,670,582 
Moravia tires ncn eaeic aneeeate 2,662,884 
SileSit/se een y eee Serres oie cu cee 672,268 
Slovakiauieregniten ek costae ges nee 3,000,870 
RR ULen ae ti eoseicos ar here nara 606,568 


In population, Czechoslovakia ranks tenth among 
the European states; with respect to density it also 
holds tenth place. 

The density of population in 1921 was 251 to the 
square mile. Czechoslovakia is one of the most thickly 
populated countries of Europe, but the population is 
not equally distributed. The Czech territories are more 
densely populated than Slovakia or Ruthenia, for in 
Silesia the population per square mile is 394, in Bo- 
hemia 332, in Moravia 309, whereas in Slovakia it is 
159, and in Ruthenia only 124. The poor mountain- 
ous districts of central and eastern Slovakia, the north- 
ern mountainous part of Ruthenia and several unpro- 
ductive counties of southern Bohemia and southwest 
Moravia are the least populous. Prague, the capital 
city, and its vicinity, several other large cities, and 
the coal district of Ostrava in Moravia and Silesia, with 
a population of 800 to 1,300 to the square mile, rank 
with the most densely populated regions of the world. 


POPULATION 3 


2. GrRowTH oF. POPULATION 


Before the World War the annual increase of the 
population in the last four decades (outside of the 
period of the agricultural crisis in 1889-1890) was 7 
to 8 per mille in Bohemia and Moravia, a little less (5 
to 7 per mille) in Slovakia, and much larger in Silesia 
(10 to 12 per thousand) ; in Ruthenia the increase was 
very high (13 to 15 per thousand annually). In that 
period the Czechoslovak Republic occupied approxi- 
mately the middle place between the European West 
and Southwest, where the increase of population was 
small, and Russia and the Balkans, where the popula- 
tion was rapidly increasing. 

The population of Czechoslovakia was not increasing 
in all the districts at the same rate. The industrial and 
commercial cities were growing very rapidly, while the 
population of the poorer agricultural districts of south- 
ern Bohemia, southwestern Moravia, northern and 
eastern Slovakia and of the mountain districts of north- 
eastern Bohemia and northern Moravia, where spinning 
and weaving were the chief home industry, was largely 
decreasing through emigration. 

In the war Czechoslovakia, like all the other Belieers 
ent countries, suffered a heavy loss of population. 
From January 15, 1911, to January 15, 1921, the in- 
crease of population in its territory was only 13,972. 
In the largest territory, Bohemia, there was a decrease 
of 11,385, 1.¢e., 1.6 per thousand; but an increase of 
one per thousand was shown in Moravia and Ruthenia, 
and a slightly larger increase in Slovakia and Silesia 
(2 to 2.5 per mille). The largest decrease in popula- 
tion, according to the last census, occurred in those 


4 CZECHOSLOVAKIA 


districts where large numbers of the population were 
employed in the textile industry which suffered from a 
shortage of raw materials during the war. 


3. Marriaces, BrrtTHS AND DEATHS 


Important changes were brought about by the World 
War. During the war and in the first years after the 
war the conditions were abnormal. In pre-war times, 
the natural movement of the population was as fol- 
lows: 

(a) Marriages.—In the years 1901-1910 there were, 
in the Czech territories, 79 marriages per thousand 
‘inhabitants; in Slovakia and Ruthenia the ratio was 
a little higher, approximately 83. The proportion 
of marriages to population in the Czechoslovak 
Republic was practically the same as in Germany 
and England. 

(0) Births—The birth rate in the Czechoslovak 
Republic was lowest in Bohemia, where, in the same 
period (1901-1910) there were 313 births (exclusive 
of stillbirths) per thousand inhabitants. The rate was 
much higher in Moravia (340) and in Silesia, and was 
highest in Slovakia and Ruthenia, where, during the 
ten years before the war, more than 400 births per 
thousand inhabitants were registered. The birth rate 
has decreased sharply in Bohemia, less so in Moravia 
and Silesia, while in Slovakia and Ruthenia the control 
of births is practiced but little. 

(c) The Death Rate.—In the Czechoslovak Repub- 
lic the death rate was much higher than in Western and 
Northern Europe. In the ten years 1901-1910 the 
death rate was: Bohemia 218, Moravia 230, Silesia 


POPULATION 5 


245, and Slovakia about 235 per thousand. The prog- 
ress of medicine and hygiene has lowered the rate very 
noticeably. 

Statistics relating to changes in the population dur- 
ing the war are available only for Bohemia, Moravia 
and the western part of Silesia; the data for Slovakia 
and Ruthenia have not as yet been collected. 


BOHEMIA, MORAVIA, AND OPAVA 
Excess of Births (+) 


Year Marriages Births Deaths or Deaths (—) 
IQII 74,497 276,453 198,643 +77,810 
IgI2 73,202 267,965 196,041 +71,924 
1913 69,574 262,892 183,070 +79,822 
1914 58,552 257,205 181,981 +75,284 
IQI5 37,188 188,657 193,900 — 6,243 
1916 32,726 132,818 179,796 —46,978 
1917 37,354 119,938 182,554 —62,616 
1918 55,242 113,489 227,729 —114,240 
1919 119,464 181,875 171,298 10,577 
1920 128,584 231,753 169,779 +61,974 


In the above-named territories which had 9.74 mil- 
lion inhabitants in 1910, and 9.64 millions or a little 
more than two-thirds of the total population of the 
Czechoslovak Republic in 1921, there were 28.5 births 
and 20.5 deaths per 1,000 inhabitants in tg11. In 
1920, when the natural changes in the population were 
not as profoundly affected by the results of the war 
as in previous years, there were 24.0 births and 17.6 
deaths per 1,000 inhabitants. 

The number of divorces in the Republic since 1919, 
when the new law regulating divorces came into effect, 
has been as follows: 1919, 2,015; 1920, 3,503; and 
IQ2I, 4,250. 


6 CZECHOSLOVAKIA 


4. EMIGRATION 


Before the World War, the territories of Bohemia, 
Moravia and Silesia lost by emigration approximately 
27,000 inhabitants, and Slovakia about 30,000 inhabit- 
ants annually. From the Czech territories, more than 
one-half of the emigrants went to Vienna and other 
parts of Lower Austria, about one-third to the United 
States of America, and a small fraction to Germany. 
From Slovakia and Ruthenia the majority of the emi- 
grants went to the United States, and only a small num- 
ber found employment in Budapest or Vienna. After 
the establishment of the Czechoslovak Republic changes 
occurred in the migration. Many Czechoslovaks re- 
siding in foreign countries returned home, the attrac- 
tion of Vienna and Budapest for Bohemian and Slovak 
emigrants was greatly lessened, and the new immigra- 
tion law passed by the United States has undoubtedly 
had some influence on the migration to America. Suf- 
ficient statistical material is not available at this time 
to throw light on the intensity of emigration from the 
Czechoslovak Republic after the war. 


5. DISTRIBUTION BY SEX, AGE AND MARITAL 
CoNDITION 

In the Czechoslovak Republic, as in all the countries 
of Central, Western and Northern Europe, there is an 
excess of women. Through losses of men’s lives on 
the battlefields that excess has been intensified. The 
proportion of women is higher in the western part of 
the country than in the eastern; in Bohemia the num- 
ber of females to 1000 males is r080, in Moravia 
1096, in Silesia 1079, but in Slovakia only 1056. 


POPULATION - 


As a result of the war and the decrease of births 
there have been great changes in the proportion of the 
population according to age. In the whole Republic, 
excepting Ruthenia, for which data are not yet avail- 
able, 399 persons in a thousand were below 20 years 
of age, 305 were 20 to 39, 202 were 40 to 59 and 94 
were 60 years or over. The percentage of children 
and youths increases toward the East. In Bohemia 
37.7 per cent of the population were below 20 years 
of age, in Moravia and Silesia 40.7 per cent, and in 
Slovakia 43.7 per cent. Conversely, there is a larger 
percentage of adults in the western part of the country 
than in the eastern part. 

Of the total number of males in the country (ex- 
clusive of Ruthenia) in 1921, 578 per thousand were 
single, 384 married, 34 widowed, and 4 divorced; 
among the females, 523 per thousand were single, 363 
married, 110 widowed, and 4 divorced. The war had 
greatly increased the number of widows, while the 
percentage of single persons was lowered by the de- 
crease of births. 


6. RAcE 


A thousand years ago the whole territory of the 
Czechoslovak Republic was inhabited by Slavs speak- 
ing the Czechoslovak language. Only Ruthenia and 
the eastern districts of Slovakia were inhabited by 
Slavs speaking the Russian language, and on a nar- 
row strip along the borders of eastern Silesia there 
lived Slavs speaking the Polish language. In those 
days the Czechoslovaks occupied a much larger ter- 
ritory extending far beyond the present borders of 


8 CZECHOSLOVAKIA 


the Republic. In the South, the Czechoslovak territory 
extended down to the Danube, and even farther to a 
point where the Czechs had the ancestors of the 
present-day Yugoslavs for their neighbors; in the West 
the Czechoslovak territory extended far into Bavaria; 
in the North, into Prussian Silesia, where the Czechs 
came into contact with the Poles, and with the Lusa- 
tian Slavs of whom only a small group, the so-called 
Lusatian Serbs, have survived north of Bohemia in 
Saxon and Prussian Lusatia. 

An intermittent migration of the Germans from the 
West, and of the Magyars from the southern plains, 
into the territory of the present Czechoslovak Repub- 
lic began early in the eleventh century. For several 
centuries the Germans have occupied the districts in 
northern and western Bohemia where Bohemia borders 
on Germany, and also a narrow strip along the south- 
ern border of Moravia, the northern section of Mora- 
via and the southwest section of Silesia; they also 
founded several German enclaves in Czechoslovak 
speaking territory, not only in Bohemia and Moravia 
but also in Slovakia, in the Spis districts in particular, 
where the Germans have been settled since the thir- 
teenth century. The Magyars settled in a narrow strip of 
territory along the southern border of Ruthenia; they 
penetrated deeper into the country along the northern 
bank of the Danube toward the present city of Nitra. 
In Czechoslovakia, as in other countries of central and 
eastern Europe, many Jews have settled in the cities. 
Toward the end of the sixteenth century a number of 
villages were established on the borders of Czecho- 
slovakia by exiles from Croatia, then menaced by the 


POPULATION 9 


Turks. In Ruthenia a few Rumanian villages have 
been founded. 

According to the census of 1921, the distribution of 
the native population by race is as follows: 


Total Per 1,000 

CG ZECHORIOVARS irae aind tales xs 8,760,937 655.1 
Russians (Great Russians 

ANC mURTaIMANS iwc sae s 461,849 34.5 
Ola oe tals koe U sheperte ois isis 75,953 5.7 
ReeLiatiae nr ee tine fa5 5's 4 6 oltre 3,123,508 233.6 
WA Valens a anew ce eh esta tS 745,431 55-7 
Le Waae shia tits das eae ete eS 180,855 13.5 
tH erem ra ioe eis sie'e sete Sve 25,871 1.9 

There were 238,808 foreigners in the country in 
1921. 


Bohemia and Moravia are inhabited only by Czecho- 
slovaks and Germans. The Czechoslovaks have a 
majority of two-thirds in Bohemia and of four-fifths 
in Moravia. In Silesia the Czechs constitute almost 
one-half of the population (47.6 per cent), the Ger- 
mans two-fifths (40.5 per cent) and the Poles one- 
ninth (11.2 per cent). In Slovakia more than two- 
thirds of the population are of the Czechoslovak race 
(68.1 per cent) and one-fifth Magyar (21.5 per cent). 
There is only a small minority of Germans (4.7 per 
cent) and Jews (2.4 per cent) in Slovakia. In Ru- 
thenia the Russians make up nearly two-thirds of the 
population (62.2 per cent), the Magyars only one-sixth 
(17.0 per cent) ; in the cities there is a large minority 
of Jews (13.3 per cent). 


7. RELIGION 


The religious situation is somewhat complicated. 
After Bohemia had lost independence as a result of 


10 OZE CHOSE ON ARTY 


the Battle of the White Mountain (1620) the reigning 
Hapsburg family carried on a ruthless campaign of 
persecution against the Reformed Church in the 
Bohemian countries. Until 1781 no religion but the 
Roman Catholic was tolerated in Bohemia and Mora- 
via; Jews were allowed to reside in cities but only in 
streets specially assigned to them. When the “Decree 
of Toleration’” was issued (1781) a small fraction of 
the population (about 2 per cent) announced them- 
selves to be of the Protestant faith. In Silesia the 
Protestants were permitted to maintain a church in 
Teschen, and eastern Silesia still has a large Protestant 
minority. In Slovakia the Protestants likewise en- 
joyed greater liberty, and many districts adhered to 
their faith; about one-sixth of the Slovak population 
has remained Protestant. The Russian population was, 
for the most part, of the Greek Catholic faith to which 
about 100,000 Czechoslovaks living in Eastern Slo- 
vakia also belonged. Shortly before the independence 
of Czechoslovakia was proclaimed about 60,000 Rus- 
sians joined the Russian Orthodox Church. After the 
proclamation of Czechoslovakia’s independence about 
1.25 million people left the Catholic Church, of whom 
about one-half remained unaffiliated, two-fifths or- 
ganized an independent Czechoslovak Church, and the 
remainder joined the evangelical churches. The num- 
ber of Jews increases from West to East; in Bohemia 
they number only 1.2 per cent, in Slovakia 4.5 per 
cent, and in Ruthenia almost a whole sixth of the 
population is of the Jewish faith. 

The distribution of the population by religion is 
shown in the following table: 


POPULATION II 


WRIT Ta ETOCS 8 Se yitoe cache Cac iuie stares 10,384,833 
Greek and Armenian Catholics ....... 535,543 
Protestants (all denominations)....... 990,319 
Crerhosiovaics COUCH... soccer es eieisas © 525,333 
HRussiaheOrtnodOXer nae oe eae Be eeratorate 73,007 
CidemathoHta mee cede cccictee se ctetce tae 20,255 
OWEANER ee Muh d div eh + seas ele stan ote 354,342 
Otherecontesstons' ous ts c's's ce cacielwme ss 2,824 
RMA SACOG We rss ioe co ace a's ciel lareioce'e.s 724,507 
RIO INE Fee iecic Ves else ool aleterstas ois 2,119 


8. OCCUPATIONS 

In Czechoslovakia the two main groups of occupa- 
tions, agriculture and industry, are about equally rep- 
resented. In Slovakia and Ruthenia agriculture is in 
preponderance, whereas in Bohemia the manufactur- 
ing industry, which began to flourish in the eighteenth 
century, now employs more people than agriculture. 
The distribution of the Czechoslovak population in 
Bohemia, Moravia, Silesia and Slovakia, by occupa- 
tion, including both the persons actively engaged in the 
several occupations and the persons supported by them, 
is as follows: 


Bohemia pea Slovakia Total 
11€s1a 
Agriculture ........ 1,989,368 1,176,122 1,818,895 4,975,085 


Manufacturing indus- 

tries and mining. 2,734,344 1,272,462 530,192 4,536,908 
Commerce and trans- 

POtta Wore cies.) 833,605 343,002 230,624 1,408,311 
Civil service, profes- 

sions andthe army 308,373 178,258 147,918 724,549 
Other occupations... 723,802 364,318 273,541 1,361,661 


DOtaleety ees 560,070,504-) 3,335,152. 3,000,070 114,000,004 


II 
AGRICULTURE 


Dr. VLADISLAV BRDLIK, PROFESSOR AT THE CZECH HicH TECHNICAL 
ScHOOL, PRAGUE 


I. PRODUCTION 


(1). Natural Condttions.—The climate of Czecho- 
slovakia is a mean between the moderate maritime 
climate and the extreme continental climate. The 
average precipitation is only 740 millimeters (in the 
mountains from 1,000 to 1,400 millimeters), while 
in France and Germany it is 710 millimeters, in Eng- 
land from 700 to 1,000 millimeters (in the mountains 
from 3,000 to 5,000 millimeters). However, two- 
thirds of the rainfall occurs in spring and summer. 
The favorable distribution of rain is due to the moun- 
tain ranges on the borders. 

Condition of the Soil—The greater part of the soil 
is heavy. In the low, most fertile parts of the country, 
beetroot, wheat, barley, rye and oats are cultivated. 
In the highlands, over 450 meters above the sea, the soil 
is still fertile enough for the cultivation of rye, oats 
and potatoes. In the highest parts of the country, 
above 650 meters, there are permanent pastures, but 
in some parts potatoes, oats, and even rye are also 
cultivated. In places where the soil is fertile and the 
climatic conditions favorable, special kinds of crops, 

I2 


AGRICULTURE 13 


such as hops, etc., are raised. When the condition of 
the soil in certain districts has been improved (an area 
of 1,800,000 hectares or about 30 per cent of the total 
arable land is to be improved) the value of the crops 
will probably be increased about 35 million dollars a 
year. 

(2). Economic Conditions.—According to owner- 
ship, the land is divided as follows: of the total land 
(including the forests) 63 per cent is owned by farm- 
ers (holding up to 100 hectares), and 37 per cent by 
large estates (from 100 to 1,000 hectares) and lati- 
fundia (estates over 1,000 hectares). Of the total agri- 
cultural land (arable land, meadows and pastures), 80 
per cent is held by farmers and 20 per cent by large 
estates and latifundia. The origin of the latter form 
of holdings is explained in the chapter on land 
reform. One-third of the arable land belonging to the 
large estates (in Bohemia 40 per cent, in Slovakia 25 
per cent) is leased to small farmers. 

Commumnications.—In former Austria there were 42 
kilometers of roads to 100 square kilometers of land. 
In the territory of the Czechoslovak Republic, how- 
ever, there were 60 kilometers of roads to 100 square 
kilometers of area. With regard to railroads, post 
offices and telegraph lines the position of the Czech 
territories before the war, in comparison with other 


states. was as follows: 


Railroads’ Post Offices Telegraph Lines 
Per 1,000 square kilometers) 


; number km. 
Grealrhitain veo... 120 105 420 
Germany iia nwe series 116 04 516 
Mrance save. so aan ois 04. 27 30! 
Czech territories .... 94 44 200 


Ttalyev aoe: 61 38 174 


14 CZECHOSLOVAKIA 


The elongated form of the Republic is rather a 
handicap to a proper distribution of production and 
consumption of agricultural produce, but, on the other 
hand, the agricultural industries are located in close 
proximity to the sources of the raw materials. Of the 
400 million quintals of the annual harvest, about one- 
quarter is consumed by the nearest factories working 
up agricultural produce, about 60 per cent is used as 
fodder, 4 per cent as seeds, and 3 per cent consumed by 
the producers, so that only about Io per cent is left for 
the market. 

In Czechoslovakia there are 1.9 kilometers of water- 
ways to 100 square kilometers of area (in Germany 3 
kilometers). The proportion of waterways in Czecho- 
slovakia will be increased considerably when the Elbe 
has been connected with the Danube by a canal via 
Prerov and Bratislava. Both the Elbe and the Danube 
will become important waterways connecting Czecho- 
slovakia with the sea, benefiting not only the manu- 
facturing industries but also agriculture. 

Market Conditions.—Average prices (1909-1913) in 
prewar Austrian gold crowns (1 cr.—$0.203): 


1 metric ton 1 quintal 


of wheat of beef 
Parishes. cto setae cele Eee 255 153 
Bertin es oer neces oe eee eee 249 154 
Bia PUG. eet. se ale ahs obs tea te eee 244 146 
LONG OMT atris ch wie scot ares 195 133 


The following table shows, in crowns, the prices 
current in Czechoslovakia in the years 1913 to Ig21 
(the figures in bold type represent prices fixed by the 
Government) : 


AGRICULTURE 18 


1913. 1914 1915 1916 1917 1918 1919 1920 1921 


I ton of 

wheat ... 210 420 340 380 420 600 800 1800 3200 
I quintal of 

beef ..... 162 185 370 618 633 620 729 2206 1650 
Fertilizer (1 

LOT ee OA) O01 219) 230 * 24359360 11-408 S020 F100 
Fodder .... 168 185 320 620 470 1500 g00 3200 


Agricultural Population (Wages and working con- 
ditions ).—Per cent of population engaged in gainful 
occupations: 


Professions, etc. Agri- 
(including the Mining & culture & 
army) Commerce Industry Forestry 
Czechoslovakia ...... 19.5 9.3 34.0 47:2 
MAT COR TA rth: wives. as seas: 14.3 21.7 42.7 
reat britain 2. J. <.0 20.9 23.1 44.1 II.9 
rOLiiany Motels’. sce ee 12.4 12.4 40. 35.2 
Led PD ey Ae Ae Marais 8.7 7.4 24.5 59.4 


Agriculture finds it more and more difficult to cope 
with the increasing demands of the growing industrial 
population of Czechoslovakia, for the percentage of 
agricultural laborers is decreasing. In the Czech ter- 
ritories, in 1890, 100 agricultural laborers had to sup- 
ply the needs of 370 persons; in 1910, of 470 persons. 
The decrease of agricultural population is caused 
mainly by the exodus of agricultural laborers to towns, 
an exodus which has not been made good by the in- 
crease in the number of farmers. 

In 1910, 100 agricultural laborers had to supply 
1900 persons in Great Britain, 650 in Germany, 470 
in Czechoslovakia, 440 in France, and 360 in Italy. 

The men migrating from the country to the towns 
were, as a rule, the best workers, so that the shortage 
of agricultural laborers was felt all the more. The 
introduction of the eight-hour working day contributed 


16 CZECHOSLOVAKIA 


to some extent also to the labor shortage on the land. 
The Czechoslovak farmers, however, are one of the 
hardest working, thriftiest and most progressive sec- 
tions of the population. 

Prewar annual wage of an agricultural laborer (in 
prewar Austrian crowns) : 


Grechoslovakia aioe case eee ee ee 610 
SEMAN Yrs Velie OM ete eae So nOR i aoe 640 
Great) Britaiaiaie teat ei tek aleie anor 1000 


Great Britain, a country preeminently industrial, was 
able to pay much higher wages than other European 
countries. 

State Support, Self-Help, and Tanff Protection 
In the Austro-Hungarian Empire protection played an 
important role in the development of economic condi- 
tions, yet, for a long time, the manufacturing industries 
alone were protected. Agriculture was not fully pro- 
tected against foreign competition until 1906. Duties 
on cereals amounted approximately to one-fourth of 
the price. Protection was abandoned during and after 
the war, but in 1921 a tariff imposing a low ad valorem 
duty on the imports of cattle was introduced. The 
duties to be imposed on cereals are at present the sub- 
ject of political negotiations. 

The former Austrian Governments had no definite 
agricultural policy. Occasional subsidies were granted 
to the agrarians in return for political support, and 
that was about all. The great problems of the land 
reform, waterways, electrification, afforestation, and 
social reforms were studiously avoided. Czechoslova- 
kia is now seeking a gradual solution of these im- 
portant questions. 


AGRICULTURE | 17 


Cooperation.—The high standard of the Czech agri- 
culture is due mainly to the voluntary cooperation of 
the farmers. The farming population has been organ- 
ized by agricultural councils and corporations based on 
voluntary association of the interested producers and 
aided by State and provincial subsidies. These councils 
coordinated the labors of various agencies working for 
the improvement of agriculture and the promotion of 
agricultural interests. Their activity was hampered 
only by insufficient State grants. 

Cooperative societies have grown up with the agri- 
cultural councils. Credit organizations, the first in the 
field, were established in nearly all villages. The 
farmers then proceeded to organize cooperative so- 
cieties for the purchase of machinery, fertilizers and 
seeds, and for the sale of produce; cooperative ware- 
houses, grist mills, distilleries, breweries, fruit-can- 
ning factories, building societies, etc. In Slovakia, 
however, cooperative societies worth mentioning did 
not exist; the societies shown in the Magyar statistics 
were but semiofficial consumers’ societies and credit 
institutions. The organizing abilities of the Slovak 
farmers have been demonstrated only after the estab- 
lishment of the Czechoslovak Republic, when, in the 
course of a single year, 969 cooperative societies were 
founded. Similarly also in Carpathian Ruthenia ac- 
tivities in this direction began only after the Magyar 
regime had been overthrown. At present there are 
about 10,000 cooperative societies in the country, with 
about one million members. Besides these a number 
of corporations for special purposes have been founded. 
In order to concentrate all the activities of the agri- 


18 CZECHOSLOVAKIA 


cultural institutions, societies, etc., the Agricultural 
Union of the Czechoslovak Republic, a non-political 
central institution, has been organized. 

In 1900 the Czech farmers established a political 
agrarian party for the protection and furtherance of 
agricultural interests which has become an important 
factor in Czech politics. 

The Czech agricultural and forestry schools, too, 
owe their origin to the spirit of self-help of the Czech 
farmers. The only Czech college of agriculture main- 
tained by the State was founded in 1906 as a special 
department of the Czech High Technical School in 
Prague. Since that time agriculture has been the sub- 
ject of systematic study. The country now has 3 agri- 
cultural colleges with four year courses (1 German), 
2 high schools of forestry and 1 veterinary high school, 
12 agricultural secondary schools of which 4 are Ger- 
man, 4 secondary schools of forestry (1 German), 27 
elementary agricultural schools (6 German, 1 Mag- 
yar), 96 winter courses (24 German, 1 Ruthenian), 9 
special schools (2 German), 12 schools of horticulture 
(4 German), 4 elementary schools of forestry (2 Ger- 
man), 40 courses in domestic science (8 German, I 
Polish, and 327 popular agricultural schools (51 Ger- 
man, 15 Ruthenian), a total of 543 schools, or 1 school 
to each 240 square kilometers of area. 

In former Austria the Czech territories had nearly 
two-thirds of all the schools with more than four- 
fifths of all the pupils. Under the Magyar régime 
there were no Slovak agricultural schools in Slovakia. 
It was only after the organization of the Czechoslovak 


AGRICULTURE 19 


Republic that Slovak agricultural school were estab- 
lished. The number of popular courses in agriculture 
has been increased under the Republic from 45 
tO 327. 

The education of the farmers was promoted also by 
more than 50 periodicals devoted to the technical and 
economic instruction of those engaged in agriculture, 
and by lectures and exhibitions. One general agricul- 
tural exhibition and twelve local exhibitions were held 
in 1922. 


II. AGRICULTURAL PRODUCTION 


The general distribution of the area with respect to 
fertility is as follows (prewar data in percentages) : 


Arable Meadows & Non- Total in 

Land Pastures Forests productive Hectares 
GNM. . ie. sos « 68 7 8 17 3,896,870 
Czechoslovakia .. 45 18 aa 4 14,048,500 
Great Britain...::) 23 58 4 15 31,223,078 
EAT COr ede nates 50 19 18 13 52,055,704 
Germany ....... 48 16 26 10 54,109,836 


In Czechoslovakia, it will be observed, nearly half 
of the total area consists of arable land, and only 4 
per cent is non-productive—a fact showing the in- 
tensity of Czechoslovak agriculture. In Czecho- 
slovakia there is really no unused land, for the land 
classified in the above table as “non-productive’’ repre- 
sents surfaces taken up by buildings, rivers, roads, etc. 
In Slovakia and Carpathian Ruthenia, however, it is 
still possible to increase the area of arable land. 

The arable land is distributed as follows (per cent) : 


20 CZECHOSLOVAKIA 


Czecho- Great 

slovakia Britain France Germany 
Potatoes, vegetables ......... 15 33 21 14 
Beetroot, hops, other produce.. I12 2I 9 16 
POGGEEPCLOPS .2 «cca ve nee 6 2 2 3 
Mallow blands ss cise eeuetaree tons 74 ‘e II ¥) 
Wheat fkils so iedacuie nate state II. II 27, 8 
BOLEYN ies pero en reih eee ea eane 14 10 3 7 
VO Myers tee ete he eee kta lee cue 17 0.3 5 26 
CD AIES Ut ny as Muanece ole taiaiece ne eta arta 15 23 17 17, 
Worn: (maize) Lisvaiere capes sta 3 Se 5 2 


The production of beetroot, maize, wheat and barley 
shows the intensive cultivation in Czechoslovakia, 
while rye, oats and fodder indicate on the other hand 
its extensiveness. In Czechoslovakia, wheat and barley 
take up 25 per cent of the arable land, in Germany 15 
per cent, in England 21 per cent, in France 30 per cent 
of the total arable land. 

The Ammal Industries—The number of domestic 
animals per 100 hectares in various countries before the 
war is shown in the following table: 


Cattle Swine Sheep 
Denier kant ee. ions lee 85 86 17 
Germatiyiniwececuins Taye 60 71 15.8 
Czechoslovakia tense urss's <taae - 51 29 15:7. 
Great Britainecs vevcuene tent 42 13 82 
TANCE 7 be tame Nai aie eee 34 18 44 


The total weight of livestock in Czechoslovakia, 
amounting to 24 million quintals, was distributed as 
follows: 


Per cent 
COWS file irs sinleta ae Cave seeera tite stele’ 45 
Other cattletcin. 2.'.\a  Nommenaeen ceteris ate 28 
TIOTSES Ave owls Sele ela A a ire 14 
SSOUITE MEE Gs ic hls acct Ce Rew a 
Sheep and‘ gaate cor. s core e ee eae, 4 


BOUltry Greene Ad ct eee meaner Coan ae Te a 


AGRICULTURE 21 


Agricultural Industries—The organization of agri- 
cultural production in the Czechoslovak Republic can 
not be fully understood without a consideration of its 
relation to the agricultural industries. There are in 
Czechoslovakia 189 sugar factories with a possible out- 
put of 1.7 million tons of sugar, 676 breweries produc- 
ing 13 million hectolitres of beer, 1,110 distilleries pro- 
ducing 1,151,000 hectolitres of alcohol, 128 starch fac- 
tories, 13 yeast factories producing 720 quintals, 140 
malt factories producing 2,300,000 quintals of malt, 
380 fruit-canning factories, 800 dairies (nearly 40 
million hectolitres of milk are used for the making of 
dairy products), over 10,000 flour mills, and 40 fac- 
tories making chicory and coffee substitutes with a 
yearly output of 600,000 quintals. These figures show 
the extent of the Czechoslovak agricultural industries. 
The extent to which the sugar and liquor industries 
have been developed is indicated in the following table 
showing the amount of sugar and alcohol produced to 
each 10 hectares of cultivated land in various countries : 


Sugar Alcohol 
quintals hectolitres 
Ayeecnonlovakia tyson oes e ae 127 13 
MTOR Vat ste a sae erate he 65 10 
Gris riew se Sete che weaies ole Wet mares 46 7 
PT ONC tin olla: stattie eg ae Pure a tele 20 5 
STrenteDeitainicuet eb ads uty ee 9 4.7 


There are in Czechoslovakia four main branches 
of agricultural activity: 1. sugar beet cultivation; 
2. cereal cultivation; 3. cereals and potatoes; 4. pas- 
tures. 

Fisheries.—The fish ponds cover an area of 45,000 
hectares. These ponds are mostly situated in southern 


22 CZECHOSLOVAKIA 


Bohemia. The total length of rivers yielding fish is 
19,000 kilometres. The annual catch of fish amounts 
in weight to 30,000 quintals and in value to about 50 
million Czechoslovak crowns. Ninety per cent of the 
fish are carps and the rest are pikes, trout and perch. 
Before the war, the greater part of the catch was ex- 
ported to Vienna and Saxony. 


III 


The relative position of the Czechoslovak Republic 
with respect to agricultural production is indicated in 
the following table showing the prewar annual yield 
of agricultural produce in various countries: 


Annual Crop of Wheat, in Quintals 


United otatesi vere eee unten cen 186,889,000 
Hrancen. cvs. youre tee ere 86,447,000 
Ttaly ee cei at mieten cies eee Ea 49,876,000 
Germany) Ge tae sate cas eee es ae 41,400,000 
SDAIN fois ec we eines che a Ore 35,502,000 
Rumanian ue cau k write ole ae eee ee 23,893,000 
Greatr Britain ick sce ween ene 16,231,000 
Grechoslovakiae. se.tcu scree Cee 9,825,756 
Netherlands” &02:0.% goto eee ee 1,333,000 
Denmack ok tue tae ee eee ee mee 1,261,000: 


RUMANIA. wae c vid a Pen Ce REE 337.0 kg, 
PAN GE ee yi fede Ried rere cle 220.5 fa: 
Linifed Motates fin se oo, pee wae tie 202/555. 
DSDaliluet shistd ves ub catalee cee kraee re woe 175.00 
TtAl Vie iste ae Aisin ce eee artes 143. Fou 
Czechoslovatias us ten usin c. yf wee eel 
Germany yee ce ke ae Meine eaten a 63:65. 
Deninatione ta 2a duel caus eame ne ee Acie 
GreaPA Britain spaces chien aie nae 35° Fa. 


Netherlands tit. Jette ores eae onehiaeas oa Gers 


AGRICULTURE 


Annual Crop of Rye, in Quintals 


RGerrrig Th Voeeee Paty Matis cere tk sinks Ste 113,093,000 
eeechiiciivanidme sy: ok seek (so soe ton 15,735,819 
PTANCee ee Ree ean oot kee 12,453,000 
LIMITE TALES Puter ee Cs ce) ie wa ke ee 8,869,000 
Siaieee ens ee ree tl eh ae aon es 7,020,000 
PETITE ie one ie ae bike Sciese caesar 4,824,000 
PVELOES PaO Ste ser ee a he er ee ee 4,109,000 
ROE YO ON cele e ira ols ole e een abe was 1,354,000 
Peta A rN ates Bh ok tee te 1,188,000 
ETS EET CTE TLE ele pan de pA aE ere ER SS a 470,000 
Production of Rye Per Capita 
SELMAN Viet chow ee a ree wee Vee eas 1.74 kg. 
Dents oe. fees coe tate eae eed Liv Aue 
SZECHOSIGYAKIA: 4 a hic etek | ate tessa ee kes 
Wetheriands sd gents cee eects Oe 70a 
SSA te att cen tite et he ee Osa 
EE ES Vel cgi red. Be etal kere = pe Oa gi NE or32 
ARAYA Ti ae ene ain do cee eitet aeete te eas ras ie de ba 
TUPILGUSOCA LES oe hee civ eis eae ne ke Ok Ostom. 
1 PETE eee iberg og ba Lele Pepe eo nt aA ec ea 0,040" 
SGTOAPRTitailleu ee en cee tet ee O.Ob es: 


Annual Crop of Barley, in Quintals 


LITE e a tALeSe et atch ok ve tae es es 
Germany 
sey at LER): «pga Rye Ry aR E CORR a RS Oe 
PPZECNOSLOVA KIA (ini te oc ei alereinetels vie's 
GSE ESD AS Ute a Ne Pa ee Cit aA 
BUPA ee rte fate wiale lc is oo De ies x hots 
Rumania 
Denmark 
PUES PSA ne Eee LP Hooke 20F) Pe pen A 
Netherlands 


eoeoeev rere ee ere ee eee eee ee ee ee 


oeeoeere eevee reer eee eer een ee ee 


oeereeoeeveece ee eevee eee ee ee ee 


ester eee eer eoe ese eeer eee eee eve 


Production of Barley Per Capita 


PVCU ere ea oke cake ow lohaaee sa eto 
Czechoslovakia 
SSA Lilo alee tage, wankers o/dwes ahead ae 
Rumania 
Germany 


eeocererereore eae ee se ees e ee 


coer eoeereerereereorer ee ee eevee ee 


oe eer err owe erereersee reer eee eee ee 


39,599,000 
33,427,000 
16,262,000 
14,899,289 
14,226,000 
10,491,000 
5,441,000 
5,352,000 
2,200,000 
710,000 


23 


24 


CZECHOSLOVAKIA 


Production of Barley Per Capita—Continued 


Writed Statesse.havo cea ee es a2 Ou 
Great’ Britati: 7iuiseiaon tenis ets ST ties 
Brances in Catheter orton 20. 8. 
Netherlantie iiiicc aie ere ey bes nse 2, Ones 
Dtaly Sia Sea es ean nen tare merrer, mente 6 3e0 
Annual Crop of Oats, in Quintals 
United: Statesivieasae ans pweetcscoetes 164,190,000 
Germanys iidies Beavis ei ees 85,929,000 
FU PATICO. cor Mee tales hee ty Mc cres Uae rare ks 51,569,000 
Gréat Britainies Con ccd ces ee 29,986,000 
Czechoslovakia ninucee ee aoe hee 13,578,366 
Dermarko segs ay gion igs es eet oa 7,558,000 
Tia Ly ey Bente Aiea ae eRe ne le eat mn 5,303,000 
SF A: WENNER GR RAL IRAN Ratti d mE IS MGI Zi 4K 4,225,000 
RUMANIA Toc by catals ae eke arene ae 4,216,000 
Netherlands anno. vas fale it ee eee te 2,929,000 
Production of Oats Per Capita 
Den Mar keve ocean wet sunita eee 272.8 kg 
Linitte@ sotatestarsy ay pete es eee 1772 Ote, 
CSETIMAT Vee eek we ae bee eee T32 Min 
BLANCO ee ie ae ie ce ee DebeG war 
Czechoslovakia were n oc eee ee 1021005 
Gréatwhritain ic cs tse Ge aeraee 60704. 
Rumanian Meera eee erie ee any eae Ook Ore a 
Netherlands0,% (us Shite ae era AGO 
SSAETY AG Rn ee at aN aoe ere re 2125 
ERALY SCC uy cate Skee fice ena cies Catt ee erate tS Se 


Annual Crop of Potatoes, in Quintals 


Cretan try Phe Bo ea a orem raat 457,758,900 
Brancekcisec: ote ree eee eee a ek 131,985,900 
Unitedt States” “rely cin Sen eer eens 97,050,650 
isreaty Britain vie. re nee ener 69,246,760 
Czechoslovakia: i. sea. ene tk 64,743,229 
SPaigeway ieee ets ee ke eae peep, 27,456,230 
Netherlands (hte sare ye ee 23,833,850 
bh 8 AS Pele apr el RE RSET AEE ig IE Ra 16,548,880 
Denmark we cua ee ee eae 8,335,600 


FUR D ace es cet eh ate eee ee ean 1,238,170 


AGRICULTURE 


Production of Potatoes Per Capita 


SESSA Vase Rt hola okcde se wiake (okie etolane 7.05 kg. 
Cxrbchasl ovakiavie 97a cis tele voids sichsieiais AOE h 
TGTRIA Tin meee ess hd ye iis taut ohale AL OAS: 
Uh gcusielas | -) utile inn Pea arpa neND RRA ag Ahag a 
eos Cove ER fale Se Say Rie i Ue So 
PGMA Mire reas hbase en uialce ties Eee te 
OEHHA! NY i arts AO TRONS MS ase RN 1.3084 
MUTATE ESTATES. Maiti stat acinee Bo ererols Goaiok 1.05 “ 
Re The wa bt RA LCP CREME as ee a Mes 2 O;ASeL. 
MR UTIL ATUL sed clots ere Ss un te ey eae, OI7aLy 


Number of Cattle 


Roniten sr OCates, 1 TODS) cwc tae oe ook 56,527,000 
RSOLTEAL) Vobiersee os Sole eat cere CR Ras eae aetahs 20,994,344 
PM PAUCeSGLO La yee tal phiaen bate en Ne 14,705,900 
Corea Le Litalla en) A eae elcome arts 10,649,569 
TCA OOS) soit es tems ewer tae see 6,198,961 
PZECUOSIOVAKIA yoru sec ohkate chien: 4,007,341 
US Etta eG LOO live clstacey oe oie eaten 2,588,526 
Pate Bia ce. Cah, eet te bac iad cyt 2,561,804 
Deutilatkeer cn eine Lat as ee ee 2,462,862 
Veterans gs serene Se cet det ce a ee 2,090,599 


Number of Cattle per 1,000 Inhabitants 


PPAR eet eae thiols cae eis duane eve chet eer ete 889 
LISTER Pesta tes Orr, Lanta cn ia citeeh tok Chet eee 612 
Pepe cal yA 2a eee toler ihe, oN RE oe Pet ee Rr 375 
PPT At there Ce Nee cele aie ea mrt one adhe ane 369 
sya rekoc id he Cn CMG Ae Uma ba AM rey ory mab ne oH RIL a MD wh oe Re 355 
WEOOSIOVAK 1S seme ui ale tie rs ore oa ee he beak eos 339 
yerrica) Ge ee erty Ur Gti ite. ge eerry a eens 323 
(SeRtR GT Atiee epee tes thle win Oe huts Sed 234 
Diol) peer asters ete ye N hiald anita Ne bs /aoie 164 
SCAR tebe oeeaie ete tt eas Boe weaie Wie wera they hak bo 130 


Linivedhtitesee ee ede ssa thee cece 61,178,000 
Gsermanyea ier: ae ane vial Gases ees 25,059,140 
Brances a Wee we ah cin ee bas ee ee 6,903,750 


(Gteati Britten ke os let eed ies 3,162,462 


26 


CZECHOSLOVAKIA 


Number of Swine—Continued 
Geechosloyakia: wince cote eons ees 
B tarly so ah ite shears eit ete eet es Ne Te 
Derimarks.c se. dese cers Hcy ee a 
SDAIN Lis ic Aocs wi aae re eee Cesena kts 


2,580,086 
2,507,798 
2,491,061 
2,472,416 
1,709,205 
1,350,204 


Number of Swine per 1,000 Inhabitants 


Denmark's. chic tude eee ceric tet 899 
United?Statess) o.cec.s eter ete crip eiacire 622 
Germany see eaten ee ee Ceci g ea 306 
RumaniahGiren CAs ceca ict ree peewee aoe haere 244 
Netherlands) oie, : cee o ceees ee eee 228 
Czechoslovakia ......s;. een ae ey Meet, Fy 190 
PLAN Cei ee SM calc te cig Otis ae See eee tes 177 
SPAIN sees se he ne Ke hates SMES We RC ee 125 
Great) Britain us iach dere neces wa ween eee 70 
Maly (ose cio ate nie neta eer ee ee ees 66 
Annual Production of Sugar, in Quintals 
Germanys ere eice fen cote ees 22,808,504 
Gréechoslovakian. iG conwnoe eee 11,457,749 
BYranGe yea ve a e's shots cate pe eee 7,309,030 
United Statesie.. 2c ecces mete ae 6,291,791 
Netherlands wees. 2 eel ice ee ee pe 2,287,732 
LMalyuiccrs see bes cela dees ie Lae 1,893,089 
Dentatky £5 46 cae he eee come eer 1,331,839 
Spain ere vies soe eee ae etree tee eenetres 1,134,139 
Rumaniaseiw is sete ron eco Gite 367,524 
Production of Sugar per 10 Inhabitants 
Czechoslovakia". o.(acc eee eee 8.43 quintals 
Denmark eo. ceis fo ee eed Piayye ee 
Netherlands «24.25 Selle eee ee 3 SSH 
Crerinatvirrns sce fac cent adeee wees. 3.53 wie 
Prance noe nes 00 en ae Gare Ge ae oe L677 
inttedeStates! civtia eee ntnies ant 0.602. 
Spaifilarsatr wees tet ne ees, 2 O.S Fie 
Ttalyior: siete eu ea eo ta wae et ORG es 
Rotana sey ees. Cn acetate ee O52 7a 


AGRICULTURE 27 


Annual Production of Beer 


Hectolitres 
Corea te titania ate ct ee ee? at 56,000,000 
HPANCE MAL erie Se eee re Eee ak 15,000,000 
Crechoslovaltineet a or. eek ees 13,307,322 
BP vbr’ Yate, 205) Ye EA i or ie a Maer ae 2,600,000 
RS a ated Cf aTaP ey Seth eS EN OY Cote ae 1,800,000 
PETA bay sch Sental heel ga te gale Mugler aa IEE 500,0V0 
SUL Fae | il gah gad AA BRA Oe ae Ran MP 380,000 
Oe LTT Mee Bees Sain Paty ee 300,000 

Production of Beer Per Capita 

Hectolitres 
ASE CA UST ILA se ere ho he ke ee aay neues 124 
eFECHOSIOVA KIA, Maar eta ee a eee ete 97.9 
RSE ian Viewed; Gide mest Eee oo eatery eae 96.1 
(BY vie sh ye per Wn esas Ron ARS hh Ree te i oie 04 
ETON CE Ret ata Se EC Se Gees es 39 
IOtHerin nsw: Skea s does idence ee eahets 30 
MULT ETI ATU egt dirt Witte at tite Liters terete eet oe 4 
SSOAITE reer ine Gong Mba ey Oe eee we 2 
Aesth A A Spe DRL IR gee es Ok Roe Dei ALA es Ts 

Annual Production of Alcohol 

Hectolitres 
CrOTIN AN Vie ote th ela ee ee eye 3,632,684 
EVARCCME EC tet ne eiie ser A ate sg 2,699,400 
Cyeeai mr itaill moe Poe ee eee te 1,192,643 
Serer lOG aia ee sida ne nue aes 1,162,291 
Gol dato Bhi CLOW, Wee Cpa apeery oar ead pda § 360,136 
PIETI at eR a Lee eek ce ee 145,900 


Production of Alcohol Per Capita 


Hectolitres 
SrecEsIGvakias 27) Sk le Vad ces lp GARI a 8.55 
Erne Gee ter MG oa Poesia, Vu enes mat ean a 6.07 
Det erianiiaaere lv tects ae Sete AO, areas 6.10 
Pier k try ties Oe Oem tae ee le, Me ea Caen ERAT Ae 5.60 
TETAS mre en re ee tor ee has wa See alo Ley 
iar ea tabitiraiiea eee er oc eee oak eee 2.63 


It will be observed that with respect to agricultural 
production, the Czechoslovak Republic may be classed 


28 CZECHOSLOVAKIA 


with the large States. It supplies the world market 
with 7 per cent of the total world production of sugar 
and with 15 per cent of the total beet sugar production. 

The agricultural wealth of Czechoslovakia is clearly 
shown in a comparison of the annual production per 
head of population in the various countries. It will 
be seen that the Republic occupies an important place 
in the agricultural production of the world. Through 
the incorporation of agricultural Slovakia the Czecho- 
slovak Republic has become nearly self-supporting as 
regards the supply of agricultural produce. 

Of the total population of Austria-Hungary, 26 per 
cent are now in Czechoslovakia. While in the former 
monarchy there were 76 inhabitants to the square kilo- 
metre, in Czechoslovakia there are 97. In spite of the 
greater density of Czechoslovakia’s population, how- 
ever, the conditions of supply are by no means worse 
than they were in the former monarchy, as can be seen 
from the following table: 


(Proportion per 100 inhabitants.) 


Czecho- Austria- 

slovakia Hungary 
Potatoes, quintals........ PPS kyr dares 351 
SUGALeiuintaleek es seem omte cs 84 30 
Gattles i hesdius as sents ate ene PP Lk | 35 
Sivine DHeAd uae ces Caer weave Sate LO 28 

Alcohol, hectoliters......... wee 8.4 5.6 
Beers hectoliters (ire ccc eateeees 07 49 


The value of the total agricultural production in 
Czechoslovakia estimated according to prewar condi- 
tions, amounts to 2,605,000,000 gold crowns, the value 
of the annual forest yield to 280 million gold crowns. 
The value of agricultural production, compared with 


AGRICULTURE 29 


other branches of production, is shown in the follow- 
ing table: 


Value of 
annual production 
(in gold crowns) 
FRPTICTACULE BO a te eee o's 0.8 se» onete 2,605,000,000 
I STR d eles adhe Be oe Ua a Ege or 340,000,000 
PUIG Ce Ueki ceri ibis cele eves bia & aie 120,000,000 
NAGE Bil idle a Sp lita’oie)« alern e's <\e-e'+ 615 oe 170,000,000 
BSR SUL WERE aes tre eas hi oo let nis eben odene 280,000,000 


The total value of the agricultural production 
amounting to 2,605,000,000 gold crowns was dis- 
tributed as follows: 


Million 

gold crowns or Per Cent 
REETEAIGNE baa Sa wicciat ae has ene 884 34 
EACOCS enti suas Bia ane ait tlw ae sre 104 4 
Sugar beet and chicory........ 173 6.6 
Tops tobacco, ir uit, ets ones oss 175 6.7 
GOT ae Cs. 2c ue ti ete he Gonian, 350 13.4 
Milk, butter, cheese............ 445 1a 
Tai <A RSA ede ran arene Une peel ape pat 282 II 
Pouits Vo an CRO Sve clog sete ccs 176 Oy 3 
MAN TLON ware beck wate ove ere ereie esters 16 0.6 


It will be observed that the production of milk, but- 
ter and cheese exceeds in value the annual output of 
the coal and iron mines, and the poultry and egg pro- 
duction exceeds in value the annual output of each, 
the brewing and the sugar industries. 

The national wealth as represented by agriculture is 
estimated, according to prewar statistics, at 25,092,- 
067,000 gold crowns. Of this sum the value of the 
land represents 62 per cent, fruit trees 1.3 per cent, 
buildings 20 per cent, livestock 9 per cent, machinery 
4.6 per cent, circulating capital 3.1 per cent. The 
forest wealth is estimated according to prewar statis- 
tics at 8,000,000,000 gold crowns of which the value 


30 CZECHOSLOVAKIA 


of wood represents 81.8 per cent and the soil 18.2 per 
cent. The value of the sugar industry is estimated at 
500,000,000 gold crowns and the brewing industry at 
300,000,000 gold crowns. Of the total estimated value 
of agriculture, four-fifths are represented by land, 
buildings and trees, and only one-fifth is represented by 
working capital. The land alone represents nearly two- 
thirds of the agricultural wealth. 

Agriculture and the War——The decrease in agri- 
cultural production during and after the war was 
caused mainly by various results of the war, such as 
the shortage of labor, the general exhaustion, exces- 
sive slaughter of cattle, etc. Immediately after the 
outbreak of the war the shortage of labor became 
acute ; there was a shortage of fertilizers, and the num- 
ber of cattle was reduced 40 per cent. All this con- 
tributed to the decrease in agricultural production 
which, in 1919, was reduced to 60 per cent of the pre- 
war average. ‘This reduction expressed in value is 
estimated at 23 billion Czechoslovak crowns. The un- 
satisfactory postwar condition of agricultural produc- 
tion was reflected also in the Czechoslovak foreign 
trade which, in the first two years following the war, 
showed an excess of imports which depressed the ex- 
change value of the Czechoslovak crown. After the 
war, agricultural production was also hampered by the 
arbitrary prices established by the State for agricul- 
tural produce whereby a great disparity was created 
between the domestic and the world prices. Thus, for 
instance, the farmer had to buy fertilizers abroad at 
current world prices, but for his produce he was paid 
for in prices fixed by the State, which were consider- 


AGRICULTURE 31 


ably below the world prices. Before the war, the 
farmer could buy 1 quintal of saltpeter for 1.2 quintals 
of wheat, in 1920 he had to pay Io quintals of wheat. 
However, in 1921, when the agricultural production had 
reached the normal level, the State control of prices 
was abolished. It had been in force seven years. With 
the increased agricultural production the imports of 
cereals have been much lower since 1921. 

The relation of the agricultural production to the 
foreign trade of Czechoslovakia is indicated in the fol- 
lowing table showing the consumption and the surplus 
or shortage of the principal agricultural products (in 
millions of Czechoslovak crowns, according to prices 
current in 1922): 


Shortage 
Con- Surplus (to be covered 
sumption (forexport) by imports) 

Wheat and rye...... 5,809 An 518 
APE V Me ee dec cielo a 1,148 1,026 Maes, 
LB ETE) Nn cerg Ahaha 1,484 672 
POtatoGss ogee csles oes 1,054 248 
TLODS tars vielen seas 40 47 
Et uits moe aes oan + ca Ay 800 300 rat 
ME CAL mratoi tee oaie a eee; 400 750 
Ata eC rae o arene wie 1,404 Re 516 
State Wits hol ura bees’ e 637 1,550 Mighty 
TaN (re) sia) Oa ee Ae 734 482 rata 
TACCOP TTT s 4 <cs'ca ae 1,980 414 
WV OOUN ew) leis dete bes 1,184 416 

5,155 1,784 


Tt will be observed that the total surplus of agricul- 
tural produce amounts to 5,155 million Czechoslovak 
crowns, and the imports to 1,784 crowns. The im- 
ports of fertilizers and fodder amount to 910 million 
crowns and the total imports to 2,694 million crowns, 


32 CZECHOSLOVAKIA 


so that the agricultural production shows a surplus of 
2,461 million crowns. 

In weight the differences between production, con- 
sumption, surplus and shortage of the principal agri- 
cultural products, with a normal agricultural produc- 
tion, are as follows: 


(In millions) 


Normal Con- Sur- Short- 
prouction sumption plus age 

Wheat and rye, quintals... 26.00 31.40 Ema 5.40 
Barley; quintale aviv eee 15.50 9.00 6.50 Shans 
Gate Sauintalsaton ane cece 14.00 10.60 3.40 A 
Potatoes, quintals ......... 66.75 59.40 7-35 nen 
Hops kilograms vats ac. 4 9.60 4.40 5.20 avers 
Pruiish QUiiitals pees tees vey II.00 8.00 3.00 iar 
MEAT. “CUINTAIS tsice se coat eet 4.26 4.76 Mae te 0.50 
Pate en cuittars aus cwce sen Tet 7 1.60 Salts 0.43 
SUG AT CINTTAIS Moni ce ate 4 II.46 ace0 8.16 Pete 
Alcohol, hectoliters ....... 1.16 0.70 0.46 Aston 
Beer, hectoliters ......... 13.30 II.00 2.30 fata 
Wood, cubic meters....... 16.00 11.84 4.16 


The facts and figures quoted show the importance 
of agriculture for the economic life of Czechoslovakia. 
It is certain that with a sound economic policy and with 
the aid of the schools Czechoslovak agriculture will 
make further progress. 


Til 


FORESTRY: 
Dr. KAREL SIMAN, COUNCILLOR OF THE MINISTRY OF AGRICULTURE 


The forests covering about one-third (33.16 per 
cent) of the total area of the country are a very im- 
portant part of the natural wealth of the Czechoslovak 
Republic and an essential asset of its economic life. 
According to the official statistics for 1920, altogether 
about 4,661,133 hectares are covered with forests and 
woods. Thus Czechoslovakia has a forest area com- 
parable to that of Finland, Sweden, Yugoslavia, or 
Austria, four of the most thickly wooded countries of 
Europe. The plan for a gradual afforestation of de- 
nuded or unproductive land will add an area of 400,- 
ooo hectares, so that in the near future the afforested 
area will exceed 5,000,000 hectares. Thus Czecho- 
slovakia, a comparatively small country, has a forest 
area nearly four times larger than that of the United 
Kingdom, one million hectares larger than that of 
Italy, or over one half of that of France. The most 
richly afforested part of the Republic is the eastern 
part; Ruthenia with 635,367 hectares (50.05 per cent), 
Slovakia 1,658,635 hectares (33.84 per cent), and 
Silesia 154,324 hectares (34.91 per cent). The west- 
ern agricultural provinces of the Republic which are 
also highly industrialized show smaller afforestation: 

33 


34, CZECHOSLOVAKIA 


Bohemia 1,569,965 hectares (30.16 per cent) and Mo- 
ravia 642,842 hectares (28.82 per cent). The extent 
of the forests alone, however, does not give a true idea 
of the Czechoslovak Republic’s wealth in wood. The 
best basis of estimate is the productiveness of the for- 
ests and the quality of the timber. 

As to formation, high forests prevail and cover an 
area of 4,001,908 hectares (91.67 per cent); they are 
cultivated for a long period of growth according to the 
kind of timber: 80 years (Pinus silvestris), 90-100 
years (Picea excelsa, Abies pectinata), 100 or more 
years (Fagus silvatica, Quercus). Low forests of soft 
timber (Alnus, Populus, Salix), or deciduous trees 
with hard timber (Quercus, Carpinus, Robinia), have 
an area of 295,397 hectares (6.30 per cent). The for- 
ests of medium height are situated chiefly in the plains 
along the Morava and the Dyje rivers in Moravia and 
along the river Labe (Elbe) in Bohemia as well as in 
Slovakia where they contain species of several genera 
of valuable trees (Quercus, Ulmus, Fraxinus, Acer, 
Betula) and occupy an area of 68,199 hectares (1.46 
per cent). 

Pure forests of coniferous trees cover an area of 
2,148,548 hectares (53.68 per cent). Forests of de- 
ciduous trees extend over an area of 1,206,881 hec- 
tares (30.16 per cent), and the mixed forests of coni- 
fers and deciduous trees have an area of 646,479 hec- 
tares (16.16 per cent). In the western provinces of 
the Republic (Bohemia, Moravia and Silesia) the chief 
timber trees are the pine and the spruce (Picea excelsa, 
Pinus silvestris), in mixed forests of conifers the silver 
fir (Abies pectinata) and the larch (Larix europea). 


FORESTRY 35 


Forests of deciduous trees (9.1 per cent) are composed 
mostly of beech (Fagus silvatica) and oak (Quercus 
pedunculata and sessiliflora) mingled with ash (Fraxi- 
nus), sycamore (Acer pseudoplatanus ), Norway maple 
(Acer platanoides), elm (Ulmus montana, campestris) 
lime (Tilia), hornbeam (Carpinus), alder (Alnus), 
poplar (Populus alba, nigra), aspen (Populus tremula) 
and willow (Salix). The mixed forests of conifers 
and deciduous trees contain, beside the above named 
species, also the birch (Betula) and various kinds of 
the service-tree (Sorbus). 

In the eastern sections of the Republic, in Slovakia 
and Ruthenia, the beech forests (Fagus) take up 42 
per cent), the spruce forests (chiefly Picea abies) 33 
per cent, and the oak woods on the southern plains 
25 per cent of the woodland. 

Recently various foreign trees have been introduced 
and proved successful, namely Pseudotsuga Doug- 
lasii (viridis and glauca) and Pinus strobus, also Picea 
pungens sitchensis, Abies concolor, Larix leptolepis: 
of the deciduous trees, Robinia pseudoacacia (espe- 
cially adapted for the sandy soil of Southern Slova- 
kia), Quercus rubra and in some places even Juglans 
nigra, 'raxinus americana. 

It is also interesting to note the methods of admin- 
istration and the productiveness of the forests. Out 
of a total afforested area of 4,661,133 hectares sys- 
tematic management has been applied to 3,490,829 hec- 
tares (74.9 per cent), the wooded tracts being treated 
on a working plan carefully based on the expected 
yield. The area outside such systematic management 
is 1,170,304 hectares (25.1 per cent). With regard 


36 CZECHOSLOVAKIA 


to the accessibility of the forests a regular exploitation 
is possible in the majority of the forests (4,001,906 
hectares, 88.1 per cent). In Bohemia, Moravia and 
Silesia only 1,314 hectares of forests are excluded 
from the systematic management. These forests 
are on the high mountain sides and are maintained 
intact in order to protect the frontiers. In Slo- 
vakia and especially in Ruthenia there are still 
477,025 hectares of forests not yet adapted for reg- 
ular exploitation; in some cases these are primeval. 
forests, and some forests in the mountains are not yet 
accessible. 

The Government is now preparing a bill for the sys- 
tematic management of all accessible forests based on 
definite plans of forest economy which will be sub- 
ject to official examination and approval. These plans 
must be based on the principle that the annual cut 
shall not exceed the annual growth so as to insure 
a continuous and regular productiveness of the for- 
esis: 

In the different parts of the Czechoslovak Republic 
the annual growth shows substantial variations due not 
only to the proportion of the various kinds of forests 
(high, medium and low), but also to the quality of the 
soil as well as the prevailing kinds of wood and the 
methods of forest management. 

The annual growth per hectare of afforested area is 
3.5 cubic meters; in the high forests it varies between 
3.3 cubic meters (in Ruthenia) and 5.3 cubic meters 
(in Silesia), 3.4 cubic meters (Bohemia), 3.5 cubic 
meters (Slovakia), 4.2 cubic meters (Moravia); in 
the low forests the average is 2.5 cubic meters and in 


FORESTRY 37 


the forests of middle height the average is 3.0 cubic 
meters. 

Taking the annual growth per hectare as the stand- 
ard, we find that the total annual growth and therefore 
also the normal annual yield is as follows: 


FORESTS. 
High Low Medium Total 
(In cubic meters.) 
RSOTetritd Mee es eke 4,959,233 86,832 64,802 5,110,867 
LST AVIA reheat 2,132,420 74,580 118,001 2,425,001 
SLE Ey ABC 8 1 ay ane eae 745,328 11,735 4,508 761,571 
PUN Gal eae. Pe art a sates a 4,559,410 491,912 52,058 5,103,380 


BUCH tae sere sak cee are 1,860,220 10,666 1,254 1,872,140 








14,256,611 775,725 240,623 15,272,950 


Furthermore when we consider that in Ruthenia and 
in Slovakia there are almost half a million hectares 
of old forests not yet opened to regular exploitation, 
we may estimate that Czechoslovakia will be able to 
produce in the near future, without endangering the 
normal yield, approximately 16 million cubic meters 
of wood because with the inauguration of rational 
methods of management in all the forests the annual 
yield will increase. 

With regard to the annual yield of wood suitable for 
industrial and building purposes and of firewood, the 
official statistics for 1920 supply the following figures: 
7,871,524 cubic meters (51.5 per cent) of wood for 
industrial and building purposes and 7,401,435 cubic 
meters (48.5 per cent) of firewood. However, as 
these figures were obtained in 1920, they can hardly 
be taken as normal, for the year-1920 was still a 
period of abnormal afterwar conditions, when the lack 
of coal made necessary the use of large quantities of 


38 CZECHOSLOVAKIA 


first-quality wood as fuel. It is estimated that in 
the near future the yield of wood from those Czech 
forests where pine trees prevail will be increased 70 
per cent (to 5,800,000 cubic meters) ; in Slovakia and 
Ruthenia, where large areas are covered with forests 
of deciduous trees (beech) not yet systematically ad- 
ministered, the yield will be about 9,300,000 cubic 
meters of wood suitable for industrial and construction 
purposes, and about 6,000,000 cubic meters of firewood. 
This yield, however, may be increased by the affor- 
estation of numerous clearings and rational manage- 
ment. 

The large forest wealth of the Czechoslovak Re- 
public naturally has given rise to various industries. 
‘Timber and lumber are partly consumed at home and 
‘partly exported. 

The annual consumption of quality timber, accord- 
ing to the statistics of 1920, is as follows: 


Cubic meters Cubic meters 


Norma yield a. ces ees on 9,300,000 
Pulp and paper mills......... 1,000,000 
Minine concernss. os. eee 720,000 
Railroads\< KR. Rvties) ast we 300,000 
Sawhisllsiaa adele bate ok oe ee 6,500,000 
Telegraph poles, etc.......... 300,000 
Total home consumptions.. ————— _ 8,800,000 
Surplusstor export.-4 oe vas 500,000 


Wood is exported chiefly from Slovakia and Ru- 
thenia. It is shipped by rail to Hungary or by the 
navigable rivers (Vah, Hron) to the Danube and by 
the Tisa to the East. Before the war, Bohemia ex- 
ported large quantities of timber by the Labe (Elbe) 
river to Germany; at present, however, the exports are 


FORESTRY 39 


much smaller, owing to the expansion of the saw-mill 
industry which in most cases has its mills situated 
near navigable rivers. Consequently, large exports of 
timber from Bohemia can not be expected in the 
future. | 

The extensive saw-mill industry is capable of work- 
ing about 6.5 million cubic meters of timber, from 
which about 3,900,000 cubic meters of sawed wood are 
made. This quantity of lumber is not all consumed 
in Czechoslovakia and a large part of it can be exported 
as semi-finished or finished products. 

The total yield of firewood can not be consumed 
at home and a large part of it is exported, especially 
from Slovakia and Ruthenia, and what can not be 
exported is either burned in charcoal kilns or used in 
factories for dry distillation of wood. 

Beside wood, the forests also yield tannin (from 
oak and pine) which is used in the leather industry, 
and forest seeds which the Czechoslovak woodlands 
yield in abundance, as well as different kinds of ber- 
ries, mushrooms, peat, grasses, medicinal herbs, etc. 
The forest seeds are sorted in modern drying factories 
(in Lip. Hradok, Ceské Budéjovice, Brno, Trhanov 
Brandys and Labem) and exported. 

It is interesting to note the ownership of the wood- 
lands in Czechoslovakia. In this respect we find a 
situation which substantially differs from the conditions 
prevailing in other European countries as regards State 
owned forests. Before the war, the Czech territories 
had practically no State owned forests (only 6,541 hec- 
jtares), because the estates of the Czech crown had been 
sold by the Austrian Government. After the establish- 


40 CZECHOSLOVAKIA 


ment of the Czechoslovak Republic, however, the State 
took possession of the estates of the former reigning 
family (76,924 hectares in the Czech territories and 
33,229 hectares in Slovakia). In Slovakia the Gov- 
ernment took over the former Hungarian State for- 
ests (199,630 hectares) and in Ruthenia 312,304 hec- 
tares, so that the State now owns 629,307 hectares 
(13.5 per cent) of the afforested area. 

The following table shows the present forest hold- 
ings in the several provinces of the Republic: 


Per Cent Owned By 


Munici- Heredi- Other 
Total affor- palities Founda- tary no- private 
ested area State &Cos tions Church bility owners 
Bohemia, Mo- 


ravia and 

Silesig.e 2,307,131 111 6.4eu) LO.O191 1340 7. Oa 24.00 7s ee 
Slovakia re sal OSG,035e 1 2.0 Wu ede 27 AO CUIO Bends 
Ruthenta 035,307) 40-05 520,050 acer OSL BAL Ove 


In a. majority of the European countries the State 
owns a large proportion of afforested areas. When 
we consider that in Czechoslovakia the forests are 
largely owned by the nobility and other private owners 
we can understand why the Czechoslovak Government 
endeavors to enlarge its ownership of woodland to one- 
third of the total afforested area, as provided by the 
laws of the agrarian reform. 

On the basis of the aforesaid principles the forest 
reform in Czechoslovakia seeks to improve the manage- 
ment of small forests owned privately or by the com- 
munes by transferring the ownership to forest asso- 
ciations. The safeguarding of forests against damage 
is an important task of the forest administration. An- 


FORESTRY 4I 


other task is the afforestation of waste lands and clear- 
ings for which the State is either organizing or sub- 
sidizing nurseries for the growing of sound trees. In 
this respect it may be mentioned that the State admin- 
istration intends to promote the gathering of forest 
seeds from full grown and selected woods, and to ex- 
ercise an efficient control over the selection of the 
seeds according to their origin, purity, and germinating 
capacity. 

It is manifestly in the interest of the national ad- 
ministration of the forests and their gradual improve- 
ment that the people should be well informed about 
the importance of rational forest economy and the 
technical education of forest officials and employees 
who are in direct charge of the forest is no less im- 
portant. 

With these ends in view the State is carrying on an 
educational campaign among the population and plan- 
ning a radical reform of the schools of forestry. The 
State has established forest academies, on the same 
high level as universities, in Prague and Brno, where 
forest directors and inspectors will be educated. High 
schools of forestry with four year terms have been 
established in Pisek, Zakupy, Hranice, Ban. Stiavnice, 
where the forest administration officials will be edu- 
cated, and also schools with one year terms for train- 
ing of foresters (DomazZlice, Jamnice, Lipt. Hajek). 
The State has also organized institutions of research 
(Prague, Brno, Ban. Stiavnice) which supplement the 
above mentioned schools. The county experiment sta- 
tions are under the jurisdiction of the institutions for 
scientific research. By these measures it is intended 


42 CZECHOSLOVAKIA 


to place the management of the forests on a scientific 
basis. 

The success of the reforms which have been indi- 
cated briefly in this article will naturally be determined 
by the remedial legislation to be passed in the near 
future, and by the efficiency of the forest service under 
the national forest administration. 


IV 


LAND REFORM 
ANTONIN PAvEL, SECRETARY, GOVERNMENT LAND OFFICE, PRAGUE 


I. REASONS FOR THE LAND REFORM 


Czechoslovakia has been largely industrialized in the 
last two or three decades but still retains the character 
of an agricultural country. The social structure of 
Czechoslovak agriculture is, however, in a sharp con- 
trast with the conditions prevailing in the manufactur- 
ing industries. The industries are modern while agri- 
culture still bears the stamp of feudalism. A few hun- 
dred families hold enormous estates—latifundia— 
while the majority of the people own but small plots 
of ground or no land at all. There is no example of 
such unequal division of land in any other country of 
Central Europe. 

The Distribution of Land Holdings.——In Bohemia 
seven-eighths of the population own no land whatever. 
Less than one one-hundredth (0.99 per cent) of the 
total area of the country is held by 373,088 owners 
owning little plots of one-half a hectare (1.2 acres) or 
less. The holders of farms varying in size from one- 
half a hectare to 5 hectares (1.2 to 12.3 acres) number 
703,577 and their holdings represent only 13.39 per 
cent of the total area. In the class of estates of more 

43 


44. CZECHOSLOVAKIA 


than 100 hectares (247.1 acres) there are 1,548 hold- 
ers possessing 37.63 per cent of the total area. Most 
of this land, however, is in the hands of 151 holders 
whose estates average between nine and ten thousand 
hectares (about 24,000 acres); their holdings aggre- 
gate 28.31 per cent of the area of the country. In 
other parts of the Republic the conditions are similar; 
in Slovakia and Ruthenia they are worse. These large 
estates, aside from the property of churches, mon- 
asteries, and foundations, have been protected in most 
cases by the law of entail. 

Origin of the Latifundia.—The present division of 
land in Czechslovakia, socially so unjust, is not the 
result of a natural development of agriculture, but of 
a political and agrarian usurpation on the part of the 
Hapsburg dynasty in the seventeenth century. Dur- 
ing the Hussite Reformation the property of the Cath- 
olic Church and a large part of the lands owned by the 
Crown had come into the hands of the nobility, who 
became energetic cultivators of the soil. In 1618 the 
Protestant nobility of Bohemia rose in defense of 
religious freedom. The revolt was crushed in the 
battle of the White Mountain in 1620, and Ferdinand 
II confiscated the property of all who had opposed 
him: the lords and the towns. The tragic results of 
the ruthless persecution of the Protestant population 
are described graphically by Ernest Denis, the French 
historian, in his work “Bohemia after the White 
Mountain.” People of other faith than the Catholic 
were banished from the country and their property, if 
not retained by the Emperor himself, was granted 
away or sold for a song to his military or political 


LAND REFORM 45 


favorites. In European history there is only one other 
such transfer of land on a large scale which might be 
compared to the confiscations of Ferdinand: the grad- 
ual expropriation of the holdings of the English earls 
and other large landowners by William the Conqueror 
after his victory on the hill of Senlac. In Bohemia 
the sale of such estates and the fines alone brought in 
38,469,728 florins, an enormous sum of money at that 
time, the largest part of which came into the hands 
of the imperial court. Gradually a new nobility and 
new owners of latifundia came to power. They were 
mostly foreigners, as shown by their names: Liechten- 
stein, Trautmansdorf, Metternich, Aldringen, Clary, 
de Riva, Marradas, Bucquoy, Colloredo, Defours, Gal- 
las, Piccolomini, Dietrichstein, Cerboni, Collalto, 
Huerta, etc. 

The Habsburg usurpation of the land and the brutal 
persecutions estranged the Czech people forever from 
the dynasty and from the new nobility, who, from 
that time on until the downfall of Austria, were at 
once the champions and the tools of political, social 
and intellectual reaction. In the course of the seven- 
teenth century the lands held by the new nobility were 
still further enlarged by the property abandoned by 
Czech exiles during the Thirty Years’ War (1618- 
1648). The frequent rebellions of farmers in the 
seventeenth and the eighteenth centuries bear eloquent 
testimony to the desperate situation of the agrarian 
serfs, the real tillers of the soil in those times. The 
reforms introduced by Maria Theresa and Joseph II 
in the latter half of the eighteenth century brought 
about a certain improvement, but it was not until 1848 


46 CZECHOSLOVAKIA 


Is 
that the serfs were completely liberated. With the 
steady growth of population, however, the question of 
land reform became more pressing. 

Emigration as a Result of Land Monopoly.—lIt is a 
well-known fact that districts with large landed estates 
lose a large proportion of their inhabitants by emigra- 
tion, whether permanent or temporary. This social 
phenomenon has been observed in all European coun- 
tries, and the Czechoslovak territories suffered large 
losses of population under the old Austrian régime. 
At present about 2,300,000 Czechoslovaks are living 
abroad, of whom approximately 1,200,000 are in the 
United States. According to the official statistics of 
Austria-Hungary, 197,373 emigrants left the Czech 
countries in I8QI-I900, and 282,444 in I907-IQIO. 
From the present territory of the Czechoslovak Re- 
public 31,726 Czechoslovaks and Ruthenians migrated 
annually during the years I9I10-1913 to the United 
States alone. The official figures would doubtless be 
much higher if they included the thousands of young 
men who without notice to the authorities fled from 
Austria to escape the military service. 

This emigration, amounting to one-sixth of the 
Czechoslovak nation, can not be explained by land 
monopoly alone. In most cases, however, the land 
monopoly doubtless was the principal cause of emigra- 
tion. Béla Kénez, the Magyar statistician, stated in an 
official publication issued shortly before the war by 
the Hungarian Bureau of Statistics, that 68 per cent 
of the emigrants from Slovakia were small farmers, 
farm workers, and day laborers. The number of 
emigrants, permanent and seasonal, increased almost 


LAND REFORM 47 


automatically in the districts with many large and en- 
tailed estates, while in those regions where medium- 
sized and small farms predominated the number of 
emigrants decreased. 

The emigration and its consequences, the loss of 
population, the flight to the cities, the decline in pro- 
duction and other economic evils can be combatted 
only by a destruction of the land monopoly, that is, by 
agrarian reform and an intensive internal colonization. 

The Increasing Number of Tenants——Another un- 
healthy consequence of land monopoly is the growing 
number of tenants, large and small. The existence of 
hereditary and inalienable large estates (entailed es- 
tates held by the nobility, the estates held by churches, 
monasteries, and foundations) and other large estates 
in the hands of a few scores of private landowners has 
given rise to a new social class, that of tenants. Some 
of these (wealthy individuals, sugar refiners, etc.) rent 
large tracts of land; some rent land to increase their 
own small holdings, while others own no land what- 
ever. The conditions prevailing in the Czech terri- 
tories are shown in the following table: 

NUMBER OF AGRICULTURAL HOLDINGS ACCORDING TO THE 


LEGAL TITLE FOR THE USE OF LAND (1902 CENSUS) 


Freehold Other 

Total of free- and leasehold forms 
hold holdings combined Leasehold land holding 
in % in % in % in % 
Bohemia... 568,389 281,544 49.5 222.405. 39.1 59,214 10.4 5,226 0.9 
Moravia... 290,678 139,682 48.1 126.541 43.5 22.684 7.8 1.771 0.6 
Silesias<<. - 58,759 §35,839 61.0 12.100 20.6 49.939) 16.9 881 1.5 


(Oesterr. Statistik LX XXIII.4) 


In most cases rent is paid in money; in a few cases 
only the payment in money is combined with payment 
in kind. In Slovakia and Ruthenia, however, payment 


48 CZECHOSLOVAKIA 


in farm produce is still customary. This kind of lease- 
hold was already known to Aristotle and Plutarch; in 
ancient Rome it was called “colonia partioria.” In 
southern and western Europe this form of leasehold 
is known as “métayage”’ or “meétairie’ and still pre- 
dominates over other forms of leasehold; in Rumania 
it predominated until 1918. Under such a lease, which 
may be hereditary or only for a term of years, the 
tenant binds himself to turn over to the owner a part 
of his crops: one-sixth, one-fifth, one-fourth, one- 
third, one-half. The size of the owner’s share in the 
lessee’s crops is determined by the conditions of the 
lease, whether the lessee himself is to furnish seed, 
fertilizer, implements, and a team, or the lessor sup- 
plies a part of the equipment. In many cases the ten- 
ant, beside turning over a part of the crops, agrees to 
work for the lessor on certain days of the year. Since 
in the eastern districts of the Republic the large es- 
tates are all leased, the small farmers in Slovakia and 
Ruthenia are the victims of ruthless exploitation. It 
has been ascertained by Czechoslovak officials that 
through the payment in produce the lessor receives 
from a given tract of land a return six times larger 
than he would obtain in any other part of the country 
where rent is paid in money. The Czechoslovak Gov- 
ernment has taken legal steps to facilitate a gradual 
commutation of this form of leasehold into leasehold 
paid in money. Only a thoroughgoing land reform, 
however, will put an end to the exploitation of the 
farmers in these districts where the old Magyar régime 
produced such unbearable conditions. 

Economic Reasons——The ambition of the great 


LAND REFORM 49 


landowner to enlarge his estate, to round it up by the 
purchase of the adjoining lands belonging to large or 
small farmers, usually made it impossible for the small 
landowner to extend his holdings. In the rare in- 
stances when land was offered for sale numerous buy- 
ers would bid up the price too high for the small 
farmer. 

Statistics of the productive capacity of large estates 
in Central European countries of intensive production 
have shown that from the viewpoint of public welfare, 
only estates of not more than 250 hectares (618 acres) 
are economically justified, and that the number of the 
estates of that maximum size should bear a certain 
ratio to the number of medium and small holdings and 
that the latter should be in the majority. 

The World War demonstrated the advantages pos- 
sessed by a self-sustaining country. In Czechoslovakia 
the war sufferings have quickened the desire and the 
effort to make the country capable of producing a regu- 
lar supply of food from its own resources. The land 
reform is regarded as a reliable means to increase agri- 
cultural production, especially with regard to meats, 
milk, eggs, fruits, vegetables, etc. The intensity of 
production on the large estates has its limits, particu- 
larly with regard to the quality of the produce. The 
production of bread grains in countries of extensive 
agriculture (Hungary, the Balkans, Russia) and the 
prospect that the grain of those countries will soon 
compete in the Czechoslovak markets compel the 
Czechoslovaks to apply new methods of production, 
as has been done in Germany, Denmark, the Nether- 
lands, Belgium, and France, where intensive produc- 


50 CZECHOSLOVAKIA 


tion prevails which depends on the predominance of 
medium-sized and smaller holdings over large estates. 
In Czechoslovakia the agriculturists as a class have 
suffered relatively small economic losses by the 
war. Owing to the high prices of farm produce, 
they have reduced their indebtedness, and in matters 
of capital and credit are now well equipped to per- 
form the task which the land reform will impose 
upon them. 

Social Reasons.—It cannot be overlooked that the 
socialist or communist movement which was so strong 
immediately after the war found numerous followers 
among the agricultural laborers on the large estates in 
Czechoslovakia. The knowledge that in all the coun- 
tries of Central and Eastern Europe a land reform, if 
not a land revolution, was unavoidable gave a new 
strength to the yearning of thousands of small land- 
owners, farm laborers and servants for a new adjust- 
ment of land ownership in their own liberated country. 
Some favor the reform program and others the so- 
cialist plan of cooperative ownership, but their chief 
object is one and the same: to abolish the land monop- 
oly which has become unbearable on account of the 
great density of population, the demand for intensive 
production, and the impatience for a betterment of the 
social conditions. 


Il. THE LEADING PRINCIPLES OF THE LAND REFORM 


Attempts to settle the land question were made to- 
ward the end of the nineteenth and the beginning of 
the twentieth century in many European countries 
(Russia, 1882; England, 1887, 1892; Norway, 1903; 


LAND REFORM 51 


Denmark, 1904; Sweden, 1904; France, 1908; Spain, 
1907; Germany, 1886, 1890, 1891, 1900, 1904, 1908). 
In Austria-Hungary nothing was done. Internal col- 
onization was proposed in a bill introduced by Count 
Falkenburg in 1893, but the bill failed of passage. In 
Galicia a law was passed in 1906, but its results are not 
known. In the Czechoslovak territories nothing was 
done whatever. Consequently, when the monarchy 
was dismembered, and the independence of Czecho- 
slovakia proclaimed (October 28, 1918) the land re- 
form was one of the most important measures demand- 
ing the attention of the legislature. The necessary laws 
and regulations were adopted in the years 1919-1922. 
The leading principles of the land reform and some of 
its practical results can now be examined. 

The Land Control Act.—The agrarian reform in 
Czechoslovakia is based on the Land Control Act of 
April 16, 1919. The purpose of the law is declared in 
section one in the following words: “In order that the 
conditions of land ownership may be adjusted, large 
landed estates situated within the territory of the 
Czechoslovak Republic, including large entailed es- 
tates, are hereby placed under Government control, and 
a Land Office is hereby created.”’ Section two defines 
large landed estates as follows: “By large landed 
estates are to be understood such holdings of real prop- 
erty, with all the rights appertaining thereto, where 
the area within the territory of the Czechoslovak Re- 
public, held by a sole owner or by the same joint own- 
ers, exceeds 150 hectares (370 acres) of farming land 
(fields, meadows, gardens, orchards, vineyards, hop- 
yards) or 250 hectares (618 acres) of land in gen- 


52 CZECHOSLOVAKIA 


eral. Husband and wife, not divorced, are to be con- 
sidered as one person.” 

Here it may be mentioned that the terms of the law 
have been misunderstood in some foreign countries. 
The words “confiscation” and “expropriation” have 
been used in this connection, though the ideas repre- 
sented by those terms are altogether foreign to the 
law. It is simply a control law—the land is laid under 
an embargo, and the owner’s freedom to dispose of his 
holdings is restricted. This idea of restriction (la 
saisie, die Sperre) is new to Czechoslovak law; it is 
somewhat akin to the idea expressed in the classifica- 
tion of ownership in the old German law (Obereigen- 
tum, Nutzungseigentum). The law places the large 
estates under Government control so that the owner 
can no longer dispose of his land at pleasure. Without 
the consent of the Land Office he cannot sell, lease, 
mortgage, or subdivide his property. The restriction 
is in no way equivalent to expropriation. Government 
control does not deprive the owner of his right of pos- 
session; it merely restricts his freedom of disposal. 
The State reserves the right to examine into all pro- 
posed transactions in land and to decide, from the 
viewpoint of the agrarian reform, whether the action 
contemplated by the owner is compatible with the ob- 
ject of the reform and therefore to be permitted, or is 
prejudicial and therefore to be prohibited. 

The law authorizes the Government to take over the 
land under its control and transfer it to new owners 
or tenants on payment of proper compensation to the 
original owner or owners of the land so expropriated. 
The special cases enumerated in the law where no com- 


LAND REFORM 53 


pensation is to be paid have been modified by the Peace 
Treaties and by the Compensation Act. Under article 
208 of the Treaty of St. Germain, compensation is to 
be paid even for the lands of the Habsburgs, the money 
to be remitted to the Reparation Commission. 

Lands and buildings forming an independent legal 
and economic unit, not used in connection with farm- 
ing on the expropriated land, are exempt from Gov- 
ernment control. The property of the provinces, coun- 
ties, and municipalities is likewise free from the re- 
strictions of the law. 

The law applies not only to large estates existing at 
the time of its promulgation but also to such large es- 
tates as may in the future be formed by the combina- 
tion of parcels of land now free from restriction and 
control. 

Persons engaged in the management of property 
under Government control, whether owners, tenants or 
others, are bound to manage it efficiently ; otherwise the 
Land Office may remove them from the management, 
under the provisions of the law of February 12, 1920. 

The right of the State to expropriate the large es- 
tates under its control is limited in one important re- 
spect. The owner may demand that a part of the 
estate, to be selected by himself, if practicable, not ex- 
ceeding 150 hectares of arable land, or 250 hectares of 
land in general, shall be reserved for him. In special 
cases a larger area may be so reserved, though the 
reservation may not exceed 500 hectares (1,235 acres) 
in any case. In determining the size of the area to be 
reserved the Land Office is to consider the needs of the 
population, the fertility of the soil, the interests of the 


54 CZECHOSLOVAKIA 


agricultural industries, of the cities to be supplied, and 
other interests of the public weal. 

At the end of 1921 the area under control aggre- 
gated 3,945,784 hectares (9,750,206 acres) or 28.1 
per cent of the total area, distributed as follows: 


STATISTICS FOR LAND UNDER RESTRICTION 


Total area Area under control 

Category: in hectares in hectares. per cent 
Fields Peet eta 5,892,834 997,128 16.9 
Meadawsitovstesty ss 1,388,816 200,957 14.5 
ClAPdENS sy, aie k siekiclans 145,705 22,490 15.4 
IMINEVATOS I ew, eens 17,422 1,431 8.2 
LASIUTCS Pencen cies 1,212,058 181,454 15.0 
TOLeEStS i. ts okies 4,654,911 2,445,658 52.5 
Lakes, marshes... 78,886 40,606 SiG 


Unproductive ..... 647,878 58,059 9.0 


14,038,510 3,045,784 28.1 


The table shows the area and the proportion of the 
land under control. From the figures given in the 
table it will, of course, be necessary to deduct the area 
(estimated at 281,550 hectares) which will be left in 
the possession of the original owners under section II 
of the Land Control Act, and the area which may be 
released from control by the Land Office. The re- 
mainder of the land under control will be disposed of 
in accordance with the agrarian reform laws. 

Expropriation of the Large Estates and the Rate of 
Compensation.—These questions are regulated by the 
law of April 8, 1920, and the supplementary law of 
June 13, 1920. The principle of eminent domain, the 
right of the State or the people in their corporate capa- 
city to take land or other private property for public 
benefit, is recognized by all nations possessing a con- 


LAND REFORM 5s 


stitutional government. The right of expropriation 
was recognized by article 365 of the Austrian Civil 
Code. Expropriation of private property for public 
uses is likewise authorized by the Constitution of 
Czechoslovakia. The agrarian reform is essential to 
the welfare of society, and the land to be distributed 
will be acquired by agreement with the owners or un- 
der the right of eminent domain. In the latter case 
the compensation to be paid for the land taken over 
will be determined on the basis of the average prices 
obtained in the years 1913-1915 at voluntary sales of 
tracts of land exceeding 100 hectares in area. The 
Government is expressly directed by the law to assess 
at a uniform rate the value of real property of the 
same category, quality and location. By the decree of 
January 21, 1920, the country has been divided into 
four distinct regions of production (sugar beets, 
cereals, cereals and potatoes, pastures), the lands 
within each region being classified according to their 
character (land with or without buildings, vineyards, 
forests, etc.). The average value of land per hectare 
is calculated on the basis of the average net income, 
which is multiplied by a coefficient varying with the 
special character of the land, its distance from a rail- 
road station, and other factors affecting the value of 
land in general. The value thus ascertained may be 
increased or reduced according to the actual condition 
of the property. Under the decree of September 21, 
1922, the assessed valuation may be increased not to 
exceed 5 per cent in the case of land without buildings; 
IO per cent in the case of land with buildings, vine- 
yards in Slovakia and Ruthenia, or forests; and 15 


56 CZECHOSLOVAKIA 


per cent in the case of buildings alone. The value of 
buildings occupied by agricultural or forest industries, 
such as breweries, distilleries, brick yards, grist mills, 
sawmills, etc., coming within the scope of the law, is 
to be estimated by experts on the spot. In the case 
of forests, the quality of the timber as well as the qual- 
ity of the soil and the age and the quantity of the trees 
are to be taken into consideration. 

In the expropriation of the latifundia or estates of 
more than 1,000 hectares (2,471 acres) the total com- 
pensation is to be reduced, as land always brings lower 
prices when sold in large tracts. Under an amendment 
to the law of 1922, I per cent is to be deducted for each 
100 hectares in excess of 1,000, but the aggregate re- 
duction may not exceed 40 per cent of the total as- 
sessed valuation. 

When a larger part of the inventory is to be ex- 
propriated with the land such inventory is to be paid 
for in cash according to the current prices. Invest- 
ments made since 1914 are valued separately according 
to the real returns they yield. Fruit-bearing trees and 
new crops, or investments in crops, are likewise listed 
separately. 

The State naturally cannot pay the inflated war or 
postwar prices for the land expropriated. Owing to 
a shortage of foodstuffs in Central Europe the prices 
had risen enormously during the war; at the present, 
however, the prices of agricultural produce are lower, 
and the value of land has declined in proportion, In 
view of these changes the compensation paid in Czecho- 
slovak currency, now happily stabilized, may be con- 
sidered by an impartial critic as adequate. A compari- 


LAND REFORM 57 


son of the rates of compensation authorized by the 
land reform laws of Germany, Poland, Yugoslavia and 
Rumania with the rates established in Czechoslovakia 
will not be to the disadvantage of the latter. 

The owner of land under control, feeling himself 
aggrieved by any administrative finding of the Land 
Office, may appeal to the Supreme Administrative 
Court for relief. In case he considers the assessed 
valuation too low he may appeal to the regular civil 
courts of the first instance, the appellate courts, and 
finally to the Supreme Court. The Land Office de- 
termines the amount to be paid but the final decision 
rests with the courts. 

The Payment of Compensation.—The compensation 
for the property expropriated, when legally established, 
constitutes a claim of the original owner against the 
State, unless the amount has been exhausted by the 
satisfaction of the lawful claims of third parties (mort- 
gage or judgment creditors, employees, etc. ). 

The State may pay the amount assessed as compen- 
sation in cash, and does so in some cases. It is evident, 
however, that an immediate payment of large amounts 
would require large funds and might lead to a sudden 
increase in the circulation of paper money and to mone- 
tary inflation. Payments in ready money would there- 
fore tend to depreciate the currency to the disadvantage 
of both the State and the creditor. 

The payment of compensation is regulated by the 
laws of April 8, 1920, and July 13, 1922. Asa rule, 
where the Land Office does not decide on immediate 
payment, the amount of compensation is recorded in 
a register of indemnities and is regarded as a State 


58 CZECHOSLOVAKIA 


debt. The debt bears interest at the rate of 4 per cent 
per annum, and the Government is bound to amortize 
at least one-half of one per cent of the debt annually. 
The register of indemnities is kept by an office known 
as the Indemnity Bank, and the bank may tender a 
payment of the debt, on three months’ notice, either in 
ready money or in other obligations of like value and 
bearing the same rate of interest. The creditor cannot 
demand payment in advance but may sell or assign his 
claim if he so desires. 

Debts secured by mortgage on the expropriated land 
are likewise entered on the register of indemnities. In 
some cases payment cannot be demanded within five 
years after registration. The pension claims of em- 
ployees, which terminate with the death of the claim- 
ant, will be satisfied from the interest on the compen- 
sation recorded in the register of indemnities so far 
as such interest may suffice. 

Allotment of Land.—The principles which are to 
govern the allotment of the expropriated lands to 
claimants are indicated in the Land Control Act and 
developed in detail in the law of January 30, 1920. 
The law provides that the State may retain the land 
for the purposes of public utility, or sell or lease it to 
small farmers, subtenants, small business men, landless 
persons, and particularly to legionaries or war invalids 
willing and able to farm the land, or to cooperative 
societies of such persons; to cooperative societies of 
home builders, consumers, or farmers; to communes 
or other municipal corporations for public purposes; 
or to scientific or charitable institutions. 

The law seeks to enlarge the present petty holdings 


LAND REFORM 59 


into self-sustaining farms of at least 5 to 15 hectares 
(12 to 37 acres), the size depending on the fertility 
of the soil, and to establish new farms by internal colo- 
nization. It is not the aim of the reform to break up 
large estates into small and thus lower the standard of 
agricultural holdings. In the division of a large estate 
only so much land will be allotted to local applicants 
that the remainder, with the buildings, will form an 
independent economic unit. The large estate will still 
be an important factor in Czechoslovak agriculture 
when the reform has been carried out in its full extent, 
for private estates of 150 hectares and public estates 
of more than 150 hectares will be conserved. The 
lands of the large estates in excess of the statutory 
maximum are to be sold or leased to individuals or to 
associations when not retained by the State for public 
purposes. Among individuals the former owners or 
employees of the estate are to be preferred over other 
claimants. To make possible the acquisition of land 
in regions where no land is available for allotment, the 
law permits a voluntary exchange of free lands in 
such regions for land under control elsewhere. When 
the land is divided, farms consisting of isolated parcels 
are consolidated into one-tract farms wherever pos- 
sible, by transfer or exchange. 

Land under forests is not to be divided. The large 
forests will be taken over by the State, and the smaller 
tracts allotted to communes or counties. In Czecho- 
slovakia the forest domain of the State, including the 
forests of the old monarchy acquired under the peace 
treaties, is comparatively small, representing only about 
13 per cent of the total afforested area of the country, 


60 CZECHOSLOVAKIA 


as against a proportion of about 30 per cent of State 
forests in other European countries. 

The allotment law introduces the principle of family 
property into the agrarian organization of the Czecho- 
slovak Republic. The property allotted under this law 
is designated as “an indivisible farm unit’ (rolnicky 
nedil) and may not be alienated or mortgaged without 
the consent of the Land Office. Such units are to 
measure 6 to 15 hectares. 

In those cases where the taking over of large tracts 
of land and its distribution would require a long time 
the owner of property placed under Government con- 
trol in 1920 or 1921 may be ordered to lease a part 
of the farming land to persons authorized by the law 
to apply for allotments (the so-called forced lease 
under section 63 of the Land Reform Law). Such 
leases may be ordered only in those cases where the 
proper administration of the large estate will not suffer 
thereby. The leases are made for six years. 

Credit Assistance to Applicants for Land.—Some 
of the applicants for land are able to pay cash. Many 
others are not, though they may possess the necessary 
experience. The latter class includes a considerable 
proportion of the officials and employees of the large 
estates. As it would be a distinct loss to Czechoslovak 
agriculture if men of experience were to be deprived 
of the opportunity to become independent farmers, a 
system of farm credits has been established by the law 
of March 11, 1920, to enable claimants of limited 
means to purchase land. Under the law mortgage loans 
may be made to applicants in amounts not exceeding 
go per cent of the value of the land or 50 per cent of 


LAND REFORM 61 


the value of buildings. Loans of higher amounts may 
be made to legionaries, disabled soldiers, or their de- 
pendents. 

The credits are granted in various forms. When 
the State has taken possession of the land after credit- 
ing the original owner with the proper amount on the 
indemnity register, an account is opened in the in- 
demnity bank for the applicant, the bank taking a 
mortgage as security. The State may become surety 
for the new tenant when he borrows money from the 
bank under favorable conditions for the purposes of 
improving the property by buildings or in other ways. 
The property thus mortgaged may not be alienated 
without the sanction of the Land Office until it has 
been cleared of incumbrances, nor within ten years in 
any case. The debtor is subject to the control of the 
authorities and may be dispossessed if he does not 
meet his obligations. 

Applicants for land may also obtain short-term 
credits from the Land Office or from the banks on a 
guaranty by the Land Office. The Land Office grants 
credit only to cooperative societies borrowing for the 
account of a member or on their own behalf. In this 
connection the Land Office expects the applicants to 
use the services of the Raiffeisen and the Schultze- 
Delitzsch savings banks, which are to be found in 
nearly all Czech villages of any size. The aggregate 
liabilities of the State assumed in guaranteeing the 
loans is not to exceed 200 million crowns (about 
$6,000,000 ). 

For the purposes of internal colonization a special 
fund of 20 million crowns has been established in the 


62 CZECHOSLOVAKIA 


Land Office by four annual appropriations of 5 million 
crowns. Various fees and fines are to be paid into 
this fund, including a fee of 10 per cent of the market 
price of the property released by the Land Office from 
control; 0.25 per cent of the rent paid under approved 
leases of property under control; 15 per cent of 
the fees payable on allotment and transfer, and all 
fines collected for violations of the land reform 
laws and regulations issued under the authority of 
those laws. 

The Land Office and Its Duties ——The Land Office 
at Prague is a central bureau established to administer 
the land reform laws. Its duties have been defined by 
the law of June 11, 1919. The office is under the juris- 
diction of the Council of Ministers. It is directed by 
a chief and two assistant chiefs. The chief or one of 
his assistants represents the Land Office before the 
Council of Ministers. Branch offices may be estab- 
lished in various parts of the country when neces- 
sary. 

The Land Office is authorized to ascertain the area 
of land to be placed under Government control and to 
make such control known by entries on the registers of 
deeds; to release certain lands from control; to see 
that land under control but not yet taken over is 
worked properly; to issue permits for the sale, lease 
or pledge of land under control; to determine the 
amount of compensation to be paid for property taken 
over; to take possession of such land and sell or lease 
it to applicants properly qualified; to grant credits and 
other assistance to the new tenants; to encourage the 
organization of agricultural cooperative societies, etc. 


LAND REFORM 63 


The Land Office decides all questions arising under the 
land reform laws except such as have been reserved 
to the courts or other bureaus. 

The officials of the Land Office include lawyers, en- 
gineers and agriculturists. The work of the Land 
Office is supervised by a governing board of twelve 
members elected by the Chamber of Deputies for three 
years. The Land Office submits reports of its work 
to the board at regular intervals, and the board may 
require special reports at any time. In a few cases 
when questions of special importance are under con- 
sideration the decisions of the Land Office have to be 
submitted to the board for approval. 


III. Some RESULTS oF THE LAND REFORM 


Leaseholds Commuted Into Freeholds.—The law 
of May 27, 1919, authorized the county courts to 
convert leaseholds into freeholds under certain condi- 
tions. Application for such conversion could be made 
only by the lessee of a small farm held and cultivated 
by him or his family at least since October 1, 1901, 
provided the land rented by him was the property of 
the State, or under the control of the Government, or 
was a part of an estate registered in the land register 
of the Province, or of an estate owned by the Church 
or a foundation. The applicant had to prove that, 
with the acquisition of such land, his total holding of 
farming land would not exceed 8 hectares. He would 
then obtain a deed on payment of a compensation 
agreed on or determined by the court after a hearing 
of experts. Under this law 93,977 hectares (232,221 
acres) of land had been purchased by the end of June, 


64 CZECHOSLOVAKIA 


1922, according to the official statistics of the Ministry 
of Justice. 

Forced Leases of Land Under Control.—The Land 
Office had been organized September 15, 1919, but 
could not undertake the expropriation and distribution 
of land on a large scale until the principles governing 
the payment of compensation had been definitely estab- 
lished by the ordinance of February 16, 1921. In the 
meantime the demand for land was partly satisfied by 
leases of arable lands under Government control 
granted to applicants properly qualified for terms not 
exceeding six years. This action, taken at a time when 
the agrarian reform laws were in the course of 
preparation, contributed to the consolidation of the 
internal political conditions, for it was an earnest 
of the Government’s intention to carry out the 
land reform. About 142,000 hectares of arable land 
was allotted under the “forced lease’ provisions of 
the law. 

Definite Allotments of Land, 1920-1922.— The 
Czechoslovak land reform is an undertaking of such 
a magnitude that it cannot be accomplished all at once. 
Nor is there any intention to do the work hurriedly, 
for the land laws have been conceived in an evolution- 
ary, not revolutionary, spirit, and no sudden transfor- 
mation of the agricultural and social structure is con- 
templated. The reform will be carried out gradually 
so that the experiences gained in the early stages of the 
work may be utilized and the economic and social ef- 
fects of the reform studied. In 1920-1921 about 26,- 
ooo hectares of land were expropriated and allotted. 
In 1921 a working program for a period of three years 


LAND REFORM | 6s 


was elaborated, and a list of the estates to be expropri- 
ated was published so that the owners and tenants 
would be informed in advance. In 1922 an area of 
62,208.12 hectares was allotted for building purposes. 
In 1923 the State took possession of 244,000 hectares 
of forests located partly in the interior and partly along 
the borders. All employees of the original owners 
were taken into Government service. 

The arable lands are taken over by the new owners 
only after the harvest. In Slovakia and Ruthenia the 
work of internal colonization has begun and several 
new villages have been founded. When the prices of 
building materials have declined and the costs of build- 
ing operations have been reduced the work of coloniza- 
tion may be expected to proceed with greater rapidity. 

Conclusion.—The legitimate interests of all property 
owners affected by the land reform are conserved and 
respected as long as they do not endanger the success 
of the work. Special care has been taken not to hamper 
the development of the various industries closely asso- 
ciated with agriculture (sugar, alcohol, etc.). The 
officials and employees of the large estates who have 
lost their positions by the expropriation of the estates 
are to be indemnified for the loss. Under section 75 
of the Compensation Law they may receive an allot- 
ment of land, or another suitable employment, an in- 
demnity in cash, or an invalid or old age pension. 

It is not intended to carry out the land reform ac- 
cording to any cut and dried schedule, scheme or doc- 
trine. The work is a continuous process of adjust- 
ment. In technical questions of importance the opinion 
and advice of experts is sought, and special consulting 


66 CZECHOSLOVAKIA 


committees, both local and regional, have been estab- 
lished. 

The results of the agrarian reform thus far achieved 
are highly satisfactory. No unfavorable influence of 
the reform on agricultural production has been ob- 
served but rather the contrary. Individual interest in 
farming has been intensified, for the ownership of land 
which had been but an aspiration and a pious wish to 
many is an inspiration to the new owners. The as- 
sistance of the numerous schools and colleges of agri- 
culture is of special value to the new farmers. The 
agrarian reform will be carried out strictly on an evolu- 
tionary and constructive basis, without any economic 
or social upheavals, so that it may become one of the 
economic mainstays of the liberated country. 


V) 
COAL 


Dr. JosepH Peters, DIRECTOR OF THE CZECHOSLOVAK MINE 
Owners’ ASSOCIATION, AND LECTURER ON THE MINING Law 
AT THE CHARLES UNIVERSITY, PRAGUE. 


The coal resources of the Czechoslovak Republic 
consist of several coal fields and lignite basins, the larg- 
est of which are situated in northern Moravia and 
Silesia and northwestern Bohemia. 

Bohemia’s coal deposits are located near the north- 
eastern. border, in the neighborhood of Zacléf and 
Svatonovice; in the territory northwest of Prague in 
the Kladno and Rakovnik districts; and in the south- 
western part of Bohemia in the Plzen district. There 
are also two small basins in the Budéjovice district and 
on the northeastern border near Brandov. In Moravia 
and Silesia the largest and the most important field is 
that of Ostrava-Karvin, beside which there are small 
coal deposits at Rosice and Oslavany. 

The most important and the richest coal field is that 
of Ostrava-Karvin which forms the southwestern ex- 
tension of the large Moravian-Silesian-Polish basin 
which covers an area of about 6,920 square kilometers; 
of this area Czechoslovakia owns about 15.6 per cent. 
This basin, in which there are several large coal beds, 

67 


68 CZECHOSLOVAKIA 


may be estimated to contain from 4,733 to 6,144 mil- 
lion tons of workable coal within a depth of 1,200 
meters. The coal is of the very best quality, having a 
heating value of 6,000 to 7,000 calories. 

The Kladno-Rakovnik basin has one main seam 6 to 
II meters in thickness above which there is a thin vein 
chiefly in the vicinity of Slany. The coal from the 
main seam is of good quality and has a heating value 
of 5,000 to 5,700 calories. 

The area of the Plzen basin is about 450 square kilo- 
meters. The coal is of very good quality, rich in gases, 
and has a heating value up to 7,000 calories. 

The Zacléf-Svatonovice basin forms a part of the 
Lower Silesian Waldenburg basin; the extent of this 
field in the southeast direction has not as yet been 
ascertained. In this basin there are about 28 seams of 
varying thickness and quality of coal. In the Rosice- 
Oslavany basin, west of Brno, there are three veins, 
which are only partially accessible. The coal has a 
heating value of 6,000 to 7,000 calories and contains 
a large quantity of sulphur (2.68 to 3.75 per cent). 

In Slovakia deposits of lignite are found in several 
places. Small beds of lignite are worked also in the 
Kyjov district in southern Moravia. The chief sources 
of lignite are, however, the three basins in northwest- 
ern Bohemia along the Ore Mountains, from Cheb 
(Eger) to the right bank of the Labe (Elbe). These 
are known as the Most-Chomutov-Teplice basin, the 
Falknov-Loket-Karlovy Vary basin, and the Cheb 
basin, these three belonging to the late Oligocene and 
the lower Miocene series. 


COAL 69 


The most important of these three fields is the Most- 
Chomutov-Teplice basin between Kadan and Ceska 
Kamenice. The quality of the coal varies according 
to location; the deeper the deposits, the better the qual- 
ity of the coal; the heating value varies from 3,000 to 
7,000 calories. 

In the Falknov-Loket-Karlovy Vary basin there are 
several seams which contain lignite of very good qual- 
ity, rich in gases. Very good gas coal is found in the 
middle depoits of the ““Anezka” mine; the coal from 
the uppermost vein of the “Antonin” is less good. 

In the Cheb basin lignite is found in seams about 30 
meters in thickness. This coal has a heating value of 
about 4,000 calories and contains much water. It is 
well suited for the manufacture of briquettes. 

The total output in 1921 was 11.65 million tons of 
coal and 21.05 million tons of lignite. The industry 
gave employment to 127,329 workingmen, of whom 
75,906 were mining coal and 51,423 lignite. Before 
the war, in 1913, the coal mines located in the territory 
_ now belonging to the Czechoslovak Republic yielded 
14.27 million tons of coal and 23.11 million tons of 
lignite, and employed 97,791 workmen. The decrease 
in the output, as compared with prewar production, 
amounts to 18.4 per cent in the case of coal and 8.9 
per cent in the case of lignite. In 1922, owing to the 
general industrial crisis which hampered the exploita- 
tion of the mines, the output increased but little. 

The following table shows the output and the num- 
ber of workmen employed in the various basins in 
the years 1913 and Ig21: 


70 CZECHOSLOVAKIA 























(a) COAL : 
1913 1921 
Output in No. of Output in No. of 
thousands of | work thousands of work- 
Mining area: metric tons men metric tons men 
eta Taihe cd 4 1« alee Wee elaine 510 2,501 433 3,904 
Slany Woche eat ameteeE 2,033 8,963 1,740 10,322 
Piven lyse Gees pose eas 1,362 7,175 918 7,286 
Kutnachiora sours ees 462 2,532 424 3,640 
Most-Chomutov ......... 35 143 25 258 
BLNO%, Seicee nea she elnik ceans 506 2,743 345 3,438 
Mor UO stravisugan oie ein stats 9,363 38,493 7.703 47,058 
LOtalinisceween sean eee 14,271 62,550 11,648 75,900 
(b) LIGNITE 
1913 1921 
Output in No. of Output in No. of 
thousands of | work- thousands of work- 
Mining area: metric tons. men. metric tons. men, 

MOSES EO a teccra vetoes s isa ore 13,926 19,621 10,514 23,702 
DED IUCr a arenes o ohare ci ekors 2.733 5,058 3,115 7,782 
CHSMmUtGV tbe aie Oe hie bers 1,948 2,471 2,459 5,032 
AGAVE ATI Ee area eis wesaib 4,097 7,095 4,516 11,295 
Ces) AOUdEIOVICE A. sles ot 4 86 I 4 
Slag yon cu elh nis eae i ne I 6 
RIN ApLLOLa Melis tat eee ; 53 93 44 86 
DLN os se cate bp sie on 255 621 181 807 
Mor. (Osttavaj. ss. ass aes I 3 2 4 
Dilova kia eed eae e sore vie le 96 190 219 2,105 
(hota ee Seite seine 22T 2 35,241 21,051 51,423 





























The quantity of coal consumed in the Czechoslovak 
Republic in normal times cannot as yet be ascertained 
as the prewar statistics relate to the whole Austrian 


empire and not the individual territories. 


On the basis 


of the available sources of information it may be esti- 
mated that the per capita consumption is approximately 


2 tons of lignite. 


On this basis of calculation the 


total consumption would amount from 26 to 30 million 


COAL 71 


tons of lignite or from 15 to 18 million tons of coal 
(in the proportion I:1.7). 

It is evident that the output of coal in the Czecho- 
slovak Republic exceeds the home consumption, and 
consequently it is possible to export a considerable 
quantity of coal. The exports of coal from the Czecho- 
slovak Republic are not the result of the surplus of 
production only, but are also due to the geographical 
location of the coal basins and the quality of 
the coal. 

The largest coal basin, Ostrava-Karvin, is situated 
near the borders of Poland and Germany, in the vicin- 
ity of the great coal basin of Upper Silesia which has 
always been the chief competitor of the Ostrava coal. 
The Ostrava coal is best suited for coking, for it is 
rich in gases and thus surpasses the Upper Silesian 
coal in quality, but, because of its adhesive character 
it is less popular as either household or industrial fuel 
than the Upper Silesian coal. Prior to the war the ad- 
ministration of the Ostrava-Karvin basin would turn 
most of the coal into coke for which there was a large 
demand both at home and abroad. Thus the Ostrava- 
Karvin basin depends on exports even though it is 
more favorably situated as to the nearest markets in 
Moravia and Slovakia than the Upper Silesian basin. 

The competition of the Upper Silesian coal with the 
Ostrava coal was detrimental to the latter, even in the 
_ nearest natural markets because the Upper Silesian 
coal had more favorable geographical conditions and 
could be sold at a lower price because of the large size 
of the strata. The exports from Ostrava were directed 


72 CZECHOSLOVAKIA 


chiefly to the South, to Austria and Hungary, and also 
to Poland and Russia. 

The production of coke in the Ostrava-Karvin dis- 
trict since I9I0 is shown in the following table: 


Production of coke 
(in thousands of 


Year metric tons) 
FOTOS 2 Ee vrata cate aa eon tenner eterae Bee cients 1,934 
LOLI ai Big citar coheecle Bharani depen egetera eta are Ni cite 2,002 
TOLQ Tacs nica ata tareteaae hues mane aetna ne te aula. an, 2,248 
TOTS reais het enh oe tase ate as Ware stale ten mi ice 2,507 
TQIA Aaa es obs Hale ee a haloes ee eee etnies 2,124 
TOT Nea Oe a Seance ata er atlas aan ae 2,124 
TOUS DUNS SPR Oe Ns pia) wad Ue avahe a ene ony 1,890 
TOTO SE Si ec alee eee ae MTR a eels 2,509 
LOU ee vale EN SOLE died ha BU Ries anetebeiameicte 2,544 
TOTO Re ge BOS ate REN Cee tame roiconte a re ot tae 2,071 
DOLO Vistas Cepia tere elaine ters ancl t tone tee mae eae ne 1,576 
TOZO NWI, ceag ake soe ALO ROn hate ee a eile ne eet gen 1,663 
NOSIS ary. etal gy at Nitta lay LC Re ea meals Cte anon aE 1,385 


The other coal basins depended on the home market 
in the majority of cases; only a part of the output of 
the Plzen and the Kladno basins was exported, chiefly 
to Bavaria. 

The Czech lignite basins regularly exported a large 
part of the output; their natural markets were over 
the western borders of the State, in Germany. As 
regards the Most-Teplice-Cheb basin, it was the cheap 
transportation by the river Labe (Elbe) connecting 
the basin with the more important markets in Saxony 
that played an important part in the development of 
the basin. The exports by way of the Labe are im- 
portant especially during the summer months when the 
consumption of coal at home is slack. 

The exports to Germany are one of the conditions 


COAL 73 


of the development of the lignite basins of northern 
Bohemia, and a vital necessity for the Falknov-Loket 
basin. The sale of the Falknov coal, as far as home 
consumption is concerned, is limited to the immediate 
neighborhood, for if shipped elsewhere the coal would 
pass through competitive coal basins (Kladno, Plzen, 
Most); thus the Falknov coal is at a disadvantage 
apart from the fact that its quality is on the whole in- 
ferior when compared with other grades of lignite 
which compete with it at home. In consequence of 
these circumstances Germany has become the chief 
market for the Falknov coal, the nearest country, Ba- 
varia, being the largest purchaser. 

The possibility of marketing lignite in Germany was 
one of the chief factors in the development of Czech 
lignite fields the output of which increased from 6 to 
almost 23 million tons between 1880 and 1913. In 
1913 the exports to Germany amounted to 6.54 mil- 
lion tons of lignite and 140,000 tons of briquettes, or 
almost 30 per cent of the total output of the lignite 
fields of northern Bohemia, and about 60 per cent of 
the output of the Falknov basin. 

These figures do not show the total exports of lig- 
nite. Considerable quantities were exported also to the 
territories of former Austria, in the first place to Up- 
per and Lower Austria, where the industries used the 
Bohemian lignite. These exports amounted to about 
950,000 tons annually. 

The factors which influenced the markets for the 
Czech coal before the war will again become operative 
as soon as normal economic conditions have been re- 
stored. This naturally applies also to the imports of 


74 CZECHOSLOVAKIA 


foreign coal, namely German, into the Czechoslovak 
Republic. 

The geographical situation has made possible, on 
the one hand, the exportation of Czechoslovak lignite, 
and, on the other hand, the importation of large quan- 
tities of coal into Czechoslovakia, especially from Up- 
per and Lower Silesia. The exact amount of coal im- 
ported into Czechoslovak territory before the war can- 
not be ascertained for the official statistics relate to the 
whole territory of the former Austrian Empire. It is 
estimated that about seven million tons of German coal 
was consumed annually in the territory now occupied 
by the Czechoslovak Republic. 

The war conditions brought about a substantial 
change in the imports as well as in the exports of coal. 
Germany needed more coal because the imports from 
England had ceased and the German industries and 
German shipping had to depend on German coal, some 
of which also had to be exported to neutral countries. 
In consequence, the exports of German coal to Austria 
were restricted, and thus also the exports of lignite 
from the Czech fields to Germany had to be reduced. 
The disastrous shortage of coal after the war, due to 
the decrease of the output on account of the diminished 
working capacity of the miners, did not permit an im- 
mediate return to normal conditions in the coal in- 
dustry as they had existed before the war. The im- 
ports and exports of coal were far below the peace 
figures and the fluctuation of the currencies also ham- 
pered the coal trade. In 1921 the total exports of 
lignite from Czechoslovakia to Germany and Austria 
were only 4.67 million tons, the exports of coal were 





COAL 75 


1.23 million tons, and the exports of coke, 300,798 
tons. The imports in the same year were only 847,000 
tons of coal and 115,000 tons of coke. The low ex- 
ports and the industrial crisis of 1922 brought about a 
slight decrease in employment at the mines, and, con- 
sequently, a slight decrease in the output of coal and 
coke. 

In 1923, however, the coal industry was benefited 
greatly by the general improvement in the Czecho- 
slovak trade. There are reasons to hope that the situa- 
tion will improve still more, owing to the 20 per cent 
reduction in the price of coal which was brought about 
in October, 1923, as a result of reductions in wages 
and a lowering of the coal tax. 


VI 
WATER POWER 


EMI, ZIMMLER, COUNCILLOR OF THE MINISTRY OF PUBLIC WorkKS 


The Czechoslovak Republic has an abundance of 
water power which is a potential source of great wealth 
for the country. The Republic is situated on the high 
European watershed between the North and the Baltic 
Seas on the one side, and the Mediterranean and the 
Black Seas on the other, with mountains standing 
across the direction of the currents of damp air com- 
ing from the ocean, so that the country is well watered. 
The Labe (Elbe), the Odra (Oder), the Morava 
(March), as well as many rivers rising in Slovakia 
and Ruthenia, tributaries of the Danube or the Tisa, 
all originate in Czechoslovakia and flow to the seas 
mentioned above. The waters of Bohemia come from 
the mountain valleys, gather into rivers, and leave the 
country at one place, thus forming a network of water- 
courses which requires a systematic regulation of the 
whole problem of water power and especially of its 
exploitation. 

The average annual rainfall in Czechoslovakia is 
740 millimetres. 


Maximum Average Minimum 


DOME Wie estes k ate ee 850 682 505 
IM Ota iia Noe ce eure we 930 667 501 
SHlESIa cue neice sage etn 1,145 873 763 
Slovakia and Ruthenia... ... 810 ; 


76 


WATER POWER 77. 


The annual flow of water is as follows: The Labe 
(Elbe) at Decin: maximum 15 billion cubic metres, 
average 10 billion, minimum 5 billion; the Morava at 
Breclava: maximum 6.8 billion, average 3.5 billion, 
minimum 1.57 billion; the Odra at Bohumin: maxi- 
mum 2.5 billion, average 1.5 billion, minimum 1.0 
billion; the Danube at Dévin: maximum 88 billion, 
average 59 billion, minimum 46 billion cubic meters. 

In the running of grist-mills, and washing machines 
and stamping mills in mines, water power has been 
used as a source of energy ever since the twelfth cen- 
tury. Water power was exploited by the great lords 
of Bohemia who built large ponds for that purpose, 
especially in southern and eastern Bohemia. They also 
built canals connecting the rivers such as the Opatovice 
canal, from Hradec to Kladruby, and the Lany canal 
from the Cidlina river to the Labe, which are still used. 
These canals are monumental works of the engineers 
of those times. 

About 13,000 establishments in Czechoslovakia use 
water power, estimated at 160,000 HP. Of these 
7,443 are situated in Bohemia, 1,945 in Moravia, 615 
in Silesia, 2,542 in Slovakia and 543 in Ruthenia. 
Water power has largely promoted the development of 
the textile industry in northern and northeastern Bo- 
hemia from Liberec to Kachov, and of other industries 
in western and northern Moravia and Silesia. 

The progress of the natural and the technical sciences 
as well as the development of the hydroelectric plants 
have led to a new progress in the installation of water 
powers. Toward the end of the nineteenth century 
the work connected with the canalization of the Vlitava 


78 CZECHOSLOVAKIA 


and the Labe between Prague and Usti, and of the 
middle Labe between Jaromér and Melnik, was begun 
and the construction of canals was planned to connect 
the Vitava (at Budéjovice) with the Danube (near 
Vienna or Linz), and the Labe (at Pardubice, through 
Prerov) with the Danube (near Vienna; now near 
Dévin) and with the Odra (near Kozli) and the 
Vistula (near Cracow). The regulation of smaller 
rivers in Bohemia was also planned. 

The regulation of the waterways was intended not 
only to make the rivers navigable but also to drain 
and irrigate the whole area. About twenty years ago, 
Frant. Krizik, the inventor of the arclight, worked out 
a plan for the development of the water powers of the 
middle Labe between Jaromér and Melnik, which would 
yield 20,000 HP per 24h. The system was to consist 
of about 20 hydroelectric plants with only two auxi- 
liary steam plants and was to supply power to the val- 
ley of the middle Labe which is both highly fertile 
and highly industrialized. This project is now being 
carried out in a form modified, of course, by the prog- 
ress of time and changed conditions. The main source 
of water power in Bohemia is the Vitava River from 
the Sumava down to Mélnik, especially in the moun- 
tainous valley from Vyssi Brod to Stéchovice above 
Prague. The river has a slope of I :1,000 with numer- 
ous rapids. It rushes through a narrow gorge in arch- 
ean rocks almost bare of dwellings where it is pos- 
sible to raise the water level about 50 meters, and thus 
gain at least 80,000 HP per 24 h. as well as make 
the river navigable. 

At the present time the project of developing the 


WATER POWER 79 


water power of the Vitava between Stéchovice and 
Kamyk, with the St. John’s rapids, is under considera- 
tion. It is estimated that the development will yield 
about 350 million KWH annually. The Vitava is 
being made navigable for ships of 700 tons from 
Stéchovice to Prague, and is already navigable for 
1,000 ton steamers from Prague to Mélnik. The Labe 
River from Mélnik to Usti also affords opportunity 
for building hydroelectric power stations at 15 locks 
to supply power to factories in Prague, Usti, and the 
neighborhood. At present, an electric power station 
is being constructed at Strekov near Usti which will 
supply 90 million KWH annually to various indus- 
tries, especially the chemical industry. On the middle 
Labe several plants are in operation and five hydro- 
electric power stations are in process of construction. 

The two largest rivers of Bohemia, the Labe and 
the Vitava, the former flowing through a plain, the 
latter through mountains, form the backbone for a sys- 
tematic development of the water powers of the coun- 
try. The fact that the high-pressure sites of the middle 
Vitava can be coupled up with the low-pressure sites 
of the Labe is especially favorable. These main lines 
will be connected with the water powers of the tribu- 
taries which have high pressure in the mountainous 
regions of their origin, and low pressure in the plains, 
like the rivers Jizera, Chrudimka, Sazava, Berounka, 
Otava, Luznice and Malse. The Vltava in the south, 
and the Jizera in the north, with an annual rainfall as 
high as 1,000 mm, and with frequent water falls, offer 
a number of suitable sites for the development of water 
power. 


80 CZECHOSLOVAKIA 


Due to the admirably regular distribution of the 
river net in Bohemia and Moravia the water powers 
are uniformly distributed throughout the country. 
These powers can be of service to all the inhabitants, 
for the power plants will encircle the whole country 
along the border mountains and the sources of the 
tributary rivers. This circle is diametrically connected 
by a cross, formed by the cross-country flow of the 
Vitava and the lower Labe from the south to the north, 
and by the middle Labe and the Berounka from east 
to west. 

The water powers will be considerably enhanced and 
enlarged by storage reservoirs, which can be safely con- 
structed in the valleys composed largely of archean 
rocks. The geological survey of Bohemia has shown 
that in the mountainous districts reservoirs with a total 
capacity of 1,600 million cubic meters can be built, 
large enough to equalize the flow of the rivers and thus 
prevent disastrous floods. In Bohemia, on the Be- 
rounka river near the castle of Krivoklat, between 
Prague and Plzen, about 600 million cubic meters of 
water can be impounded by the construction of a 
masonry dam 60 meters high; the reservoir would im- 
prove the flow of the Vitava and the Labe for a dis- 
tance reaching far into Germany. Navigation would 
also gain and the effectiveness of all water-power plants 
would be increased. This reservoir would be the larg- 
est of its kind in Europe. The coal mines situated in 
the neighborhood of the water-power stations will 
supply low-cost fuel for the auxiliary steam plants, the 
combination permitting an ideal solution of the prob- 
lem of a regular supply of power. 


WATER POWER 81 


Thus nature itself comes to the aid of the engineer, 
enabling him at a low cost to construct an efficient 
system for the development of water power and the 
distribution of energy. There is no doubt that sufh- 
cient power will be provided for the manufacturing 
industries, for agriculture, and the people in general, 
at a very low cost—a great advantage in international 
competition. 

The country has been exhausted by the war, but 
the work of power development and electrification 1s 
proceeding rapidly, for it is generally recognized that, 
under the conditions described above, a power plant 
is a highly productive and profitable investment. In 
some districts of Bohemia, particularly along the 
middle Labe, electricity has already largely supplanted 
expensive human labor not only in the factories but 
also on the farms. 

In Moravia the conditions are similarly favorable. 
Almost the whole province belongs to the basin of 
the Morava river which carries all the drainage of 
the country, with the sole exception of the Odra, south- 
ward to the Danube. The Morava, flowing through a 
wide plateau from north to south, offers a series of 
low-pressure water powers, some of which are 
under construction (Kromeriz, 3,000 HP; Hodonin, 
1,000 HP, etc.). Additional power can be developed 
on its tributaries, the Becva, the Bystricka, and others. 

The course of the Dyje (Thaya) resembles that of 
the Bohemian Vitava. Flowing from west to east in 
a gorge of metamorphic rocks, the Dyje offers high- 
pressure sites. By a masonry dam below Vranov 180 
million cubic meters of water will be impounded, and 


82 CZECHOSLOVAKIA 


the entire course of the Dyje to its junction with the 
Morava will be controlled; the truck farms in the 
valley will be protected against floods and at the same 
time provided with a regular supply of water for 
irrigation purposes; in four reaches of the river 
16,316 HP will be developed, producing 100 million 
kwh per annum. The tributaries of the Dyje also 
offer sites suitable for the construction of reservoirs 
and the development of about 13,700 HP. 

By impounding about 700 million cubic meters of 
water in storage reservoirs in Moravia it will become 
possible to regulate the discharge of the Morava basin, 
enlarge the water powers and connect them by a high- 
tension line along the frontiers as well as diagonally. 
The coal mines of Rosice and Oslavany in western 
Moravia and the great coal fields of Ostrava in the 
northeast will supply the auxiliary steam plants. These 
conditions assure an economical development and prof- 
itable exploitation of the water powers available in 
Moravia. 

Silesia, divided in two unequal parts by the north- 
east extension of Moravia, offers workable water- 
power sites in the Sudetes mountains in the west. 
The conditions are less favorable in the eastern part 
of the country. The Sudetes consist of gneisses and 
other crystalline rocks, while limestone and sandstone 
formations predominate in the Carpathians of eastern 
Silesia where the great porosity of the soil, the greater 
rapidity of disintegration, and the movement of 
boulders and gravel are serious hindrances to water- 
power development. These conditions are very similar 
to those prevailing in the Austrian Alps where the 


WATER POWER 83 


construction of reservoirs is almost impossible. Never- 
theless, more than 30 sites suitable for reservoirs 
have been surveyed in Silesia, and 12 reservoirs are 
planned to feed the Odra and improve its flow far 
into Germany. Work has been commenced on the 
damg at Zimrovice and Kruzberk, near Opava and 
Krnov, which will provide about 40,000 HP for the 
textile and the metallurgical industries and supply 
water to the mines and iron mills of Vitkovice, Ostrava 
and Bohumin in the Karvin-Ostrava coal basin, the 
most highly industrialized region of Moravia and 
Silesia. 

In the aggregate, about 120,000 HP is available in 
Moravia and Silesia, with about 33,000 HP developed. 
Plans have been prepared for the immediate develop- 
ment of 84,000 HP. 

Slovakia, long neglected by the former régime, has 
been carefully surveyed for water-power sites. The 
steep slopes of its rivers and the large volume of 
water carried by them give Slovakia the first place 
among the provinces of the Czechoslovak Republic in 
water-power resources. The potential water power is 
estimated as 775,000 HP, with only 35,000 HP 
developed. The limestone formation of the Carpathians 
and the resulting movement of gravel offer certain 
obstacles, but the extensive valleys permit the con- 
struction of lateral canals, flumes, and conduits to con- 
centrate the falls, and the installation of hydro- 
electric plants in an unbroken series along some of 
the rivers, particularly the Vah (Waag). The flow 
will be improved by a storage reservoir for 280 million 
cubic meters of water at Trstenice, near the frontier 


84 CZECHOSLOVAKIA 


of Poland. The valleys, extending from the Carpa- 
thians to the Danube in parallel lines, and dotted with 
iron mills, paper mills, and industrial cities, will be 
connected by primary lines over the mountain ridges 
and provided with a network of distributing lines. 
The auxiliary plants will use petroleum from the Gbely 
oil fields, or coal from Ostrava or local mines. Two 
great potential sources of water power are the Danube 
which forms the boundary between Slovakia and 
Austria and Hungary, and the lower Morava, from 
Breclava to Dévin, forming the boundary between 
Slovakia and Austria. 

By the peace treaties of St. Germain, article 306, 
and of Trianon, article 290, the Czechoslovak Republic 
was given an exclusive right to develop water power 
on the border rivers on authorization by the Inter- 
national Danube Commission. Czechoslovakia will 
doubtless utilize this right to its fullest extent, espe- 
cially on that part of the Danube near Bratislava, 
where, under the Trianon Treaty, it controls both 
banks. It will not be difficult to utilize the water power 
of the main stream of the river, and also that of the 
long arm of Nové Zamky which diverges from the 
main stream below Bratislava and after a course of 
103 kilometers again joins the Danube near Komarno. 
The fall of this arm is 29 meters; it can easily produce 
250,000 H P, which would yield 750 million KWH 
annually for the city of Bratislava and the vicinity 
with its ports, railroads, industries, and farms. 

Ruthenia, which has very fertile lowlands in the 
southern part and mountains and forests in the north- 
ern part, offers suitable sites in the northern districts. 


WATER POWER 8s 


The rivers flow almost parallel from the Carpathians 
to the Tisa river and are at present used for the 
floating of timber. Some important weirs have been 
constructed here to regulate the flow of water. The 
potential water power in Ruthenia is estimated at 
about 227,000 HP, of which at present only about 
4,000 HP is utilized. The project, which is now under 
consideration, contemplates the construction of one of 
the largest plants in Czechoslovakia, that is, the con- 
nection of the rivers Rika and Terblje by a conduit 
for the erection of a hydrocentral with a capacity of 
44,000 HP. Power plants with a total capacity of 
50,000 HP are planned which will fully supply the 
local demand. 

On the basis of surveys as explained in the fore- 
going, the water power resources of the Czechoslovak 
Republic may conservatively be estimated as follows: 


Potential Developed 

Horse power Horse power 
DOME ee Mera al, wea tie aitshe 500,000 90,000 
Moravia and Silesia........ 120,000 33,000 
PIO ARIA eC reece a 775,000 30,000 
POPE TIL oot Galatea o's yo Mishieee 227,000 4,000 
PL SaLA Dental stars store cig'e ere 1,622,000 157,000 


It will be seen that only ten per cent of the available 
water power is utilized at present. This water power 
would yield at the distribution switchboard 5.5 mill- 
ion Kwh annually. This power will be substantially 
increased when the extensive program of development 
which is being prepared has been carried out and when 
the geological survey of Slovakia and Ruthenia has 
been completed. In the meantime, hydrocentrals are 


86 CZECHOSLOVAKIA. 


being constructed by the Government and by municipal 
corporations, on the principle that if low-cost energy 
is to be placed at the service of the people, it must be 
under the control of the public. 

The State is now building 10 hydro-electric power 
stations at a cost of about 136 million Czechoslovak 
crowns, the provinces (Bohemia, Moravia) are con- 
structing 6 power stations at a cost of about 75 million 
Czechoslovak crowns; in the budget for 1922 the 
State provided 50 million and the provinces 42 million 
Czechoslovak crowns for the hydrocentrals. It should 
be mentioned that the Republic is financing the develop- 
ment with its own funds. 

For the water powers which can be developed in 
the immediate future as soon as the necessary appro- 
priations become available, the State, the provinces 
and the municipal corporations have prepared the 
following projects: 


Horse power 





GUGM ia iy cs ieee nieta nikere alee aletatete cteaeteiate 285,360 
MOLAVIAl Lac soins Motes emcee ene 33,9023 
SESIA Nay SENG Rah Cole ER Rea oeies He ok om 39,213 
Slovakia: cau aioe ta oe aaete ae ee 20,889 
Garpathiatr yi Qtuenitea anc cs cee cre neice ks 46,340 

Potale cur eee BE ety. MES aie ictal ar oth 425,734 


at a cost of about 2.6 billion Czechoslovak crowns. 
The financial success of hydro-electric plants natur- 
ally depends on an adequate and constant consumption, 
and an economical organization of the distribution and 
sale of the current. 
There can be no doubt that the consumption of 
current will increase. Czechoslovakia possesses about 


WATER POWER 87 


75 per cent of the industries of former Austria and 
is an exporting country; the people are well informed, 
hard-working and progressive. The demand for low- 
cost energy increases as human labor becomes too 
expensive. Many of our farmers who have used 
electricity for years have declared that they can not 
do without it; and low-cost energy is indispensable to 
manufacturing industries in the present conditions of 
international competition. 

In 1913 engineer Vladimir List estimated the con- 
sumption of current in Bohemia for that year at 1,800 
million KWH, and for Moravia at 370 million. If 
we add about 830 million for Silesia, Slovakia and 
Ruthenia, the consumption of current for the year 
1913 would have been about 3 billion KWH, which 
could have been fully supplied by water power. 
According to present indications, consumption will 
increase as soon as the conditions, especially in eastern 
Europe, have again become normal, and trade has 
returned to its former channels. 

The supply of energy and the distribution of power 
are in the hands of special organizations. The country 
is divided into fifteen districts; Bohemia into six, 
Moravia and Silesia into four, Slovakia and Ruthenia 
into five. In each district mixed corporations, asso- 
ciations, or cooperative societies have been organized, 
in which the State, the provinces, counties, communes, 
and large industrial establishments are shareholders. 
These organizations provide the current, that is, they 
rent the power stations, particularly the hydrocentrals, 
or obtain power from the plants owned by the State 
or the provinces, and distribute and sell power to large 


88 _ CZECHOSLOVAKIA 


consumers or to organizations which sell the current 
to minor consumers. 

The associations organized thus far have achieved 
very good results. The following table shows their 
operating capital: 

State and 
Total municipal 


(in million Czecho- 
slovak crowns) 


BoheMiarn o.6 3 ap hcs ere creas wists imme) 105 
Moravia andi pilesia ste cece 59 25 
Sloyakiacand eRtutnenia i4ice eels 28 12 

206 142 


This movement was initiated by the Government. 
Less than nine months after the establishment of the 
Czechoslovak Republic, on July 22, 1919, a law was 
passed in support of electrification, and the foundation 
was laid for the carrying out of the first part of the 
program. The Government granted a subsidy of 
120,000,000 Czechoslovak crowns to enterprises of 
public utility which were assisted also by the removal 
of various legal and financial obstacles, the Govern- 
ment, however, retaining the right of supervision. The 
Czechoslovak Government is fully aware of the great 
importance of water power and is working energet- 
ically for a proper solution of the problems of develop- 
ment and an effective utilization of that valuable 
resource. 


VII 
INDUSTRY 


Dr. Kare, Franzzt, Eprtor or “THE CZECHOSLOVAK ComMPaAss,” 
PRAGUE 


The development of industry is everywhere closely 
associated with political, historical and social condi- 
tions, as well as with the natural conditions of the 
country. 

In Czechoslovakia the historical and political condi- 
tions favored the progress of the German industry. 
German immigrants had been coming to Czechoslovakia 
since time immemorial, at first mainly from the vicinity 
of the lower Rhine. These German immigrants, 
together with the German nobility and the industrial 
policies of the government in the seventeenth and par- 
ticularly in the eighteenth and nineteenth centuries, 
were mainly responsible for the advanced position of 
the German industry in Czechoslovakia as compared 
with the Czech and the Slovak industry. 

The Czech nation, deprived not only of its political 
independence, but likewise of the most intelligent and 
the most enterprising and active industrial classes by 
the terrible consequences of the battle of the White 
Mountain (1620), and by the subsequent religious 

89 


90 CZECHOSLOVAKIA 


persecution, Germanization, and feudal oppression 
carried on for centuries, entered the nineteenth century 
only a remnant of a nation, but happily composed of 
sturdy peasants. The emancipation of the peasants 
begun by Emperor Joseph’s reforms and fully accom- 
plished in the period 1848 to 1879, with the freedom 
of occupations, obtained in 1858, gave the Czech 
peasants freedom of movement and freedom in the 
choice of occupation, offered them the possibility 
to enter government service, to engage in industries 
and commerce, and thus to free themselves from 
German influence and predominance and to build up 
the Czech national community. In Slovakia the work 
of undoing the consequences of a thousand years 
of oppression of the Slovak branch of the Czecho- 
slovak nation is still in the beginning. Notwith- 
standing these historical conditions, the Czechs have 
succeeded in numerous branches of industry and com- 
merce and the Slovaks, too, are making favorable 
progress. 

Among the natural conditions of industrial produc- 
tion, the natural resources and water as a source of 
power are of foremost importance. Czechoslovakia. is 
richly wooded, has plenty of coal and other minerals 
and raw materials, and has an excellent agriculture 
which nearly covers the needs of the home popula- 
tion, so that only wheat needs to be imported. The 
importance of the Czechoslovak countries in this 
respect is indicated in the following table, showing the 
imports and exports of Czechoslovakia in 1920 in com- 
parison with the foreign trade of Austria-Hungary in 
IQI4: 


INDUSTRIES QI 


Czechoslovakia in 1920 Austria-Hungary in 1914 
Imports Exports Imports Exports 
1. Raw materials— ; 
Gitintalss.icstsssete 30,808,745 55,529,729 159,637,941 104,722,173 
DICCES aise ars arensiore 24,550 1,336 123,061 128,061 
2. Semi-manufactures— 
duintals yes eee 2,850,406 5,493,180 4,724,614 22,455,538 
3. Manufactures— 
quintals......... 5,442,407 7,999,230 5,432,959 14,773,734 
DICCESsaiete (ele sicieinis 231,252 2,645,532 2,347,234 6,961,417 
tons (ships)..... 10 Bees 381 9,657 
Total— 
GtiintalScars asses 39,101,558 69,022,139 169,805,514. 141,951,445 
DICCES Hae sicles ed « 255,802 2,646,868 2,470,295 7,089,478 
tons (ships)..... 10 Le A 381 9,657 


In 1914 Austria-Hungary imported 159.6 millions 
of quintals of raw materials, 7.e., 94 per cent of the 
total imports, and exported 104.7 million quintals of 
raw materials, 2.e., 74 per cent of the total exports. 
The imports were 55 million quintals more than the 
exports. In 1920 Czechoslovakia imported 30.8 mil- 
lion quintals of raw materials, 1.e., 78.8 per cent of 
the total imports, and exported 55.5 million quintals, 
1.¢., 80.5 per cent of the total exports, exporting there- 
fore, 24.75 million quintals or 80.4 per cent of raw 
materials more than it had imported. The chief ar- 
ticles of exports were supplied by the natural wealth, 
for two-thirds of the exports was coal and wood. The 
exports of coal and wood in 1920 were 51.8 million 
quintals, and the imports 13.2 million quintals only. 
There is an abundance of lignite, the exports of which 
in 1920 were 33.89 million quintals, and the imports 
0.4 million quintals only. 

Minerals other than coal were second in the exports 
in 1920, totaling 5.02 million quintals, and including 
1.8 million quintals of china clay and 0.84 million 
quintals of other clays, 0.43 million quintals of iron 
ore, 0.45 million quintals of limestone, 0.17 million 


92 CZECHOSLOVAKIA 


quintals of lime, 0.22 million quintals of sand, 0.2 
million quintals of magnesite, 0.12 million quintals of 
graphite, etc. The total imports of ores were 9.27 
million quintals, an excess of 4.25 million quintals 
over exports. The imports of iron ore alone were 5.63 
million quintals (3.33 from Sweden, 1.22 from Ger- 
many, 1.05 from Austria). 

The chief iron mines are situated in the districts of 
Nutice, Jinocany, Krabulov Zdice (Prazska Zelezarska 
Spolecnost), Ejpovice, in the Gemer district (Akciové 
Zelezarny in Hradek), in Nizni Medzev (Abauj-Turna 
district in Slovakia), in the Spis district in the vicinity 
of Gelnice and Slovinek (Rimamuransko-salgotar- 
janska Zelezatska), in Krompachy (Pohernadska Zele- 
zoprumyslova ) and in Prakovce, Government-ownediron 
mines are situated in Zeleznik, Rudné and Nadabule 
near Roznava in the Gemer district in Slovakia. Crude 
sulphur is mined in Cajle, copper ore in Casté near 
Pezinok (Bratislava district), in Dobsine (Gemer dis- 
trict) and in Vernerovice (Broumov district). Govern- 
ment-owned silver and lead mines are in Pribram; 
gold, silver, lead and copper mines in Bariska Stiavnice; 
gold and silver mines in Hodrus, Finsterort and 
Vyhen (Tékov district), gold and silver and antimony 
mines in Magurka (Tékov district) and Zlata Ida 
(Abauj-Turna district). There is also a gold mine 
in Cajle near Pezinok (Bratislava district) ; antimony 
is extracted in Millsorsko; lead is found in Chvalovice 
near Netolice in Bohemia, in Bradno and Rovné in the 
Gemer district in Slovakia; magnesite in the Gemer 
area in Chyzna Voda, in JelSava, Ochtiné and Hnusté 
near Kosice and in Lovinobani (Novohrad district) ; 


INDUSTRIES 93 


the annual output is about 102,000 metric tons, of 
which about 20,000 tons is used at home and the 
remainder exported. The government-owned salt 
mines at Solnohrad near Presov in Slovakia and at 
Akna Slatina in the Marmaros district in Ruthenia 
should also be mentioned, as well as the opal mines 
in Dubnik near Presov, and the naphtha wells at Gbely 
in the Nitra district of Slovakia. 

The Bohemian iron industry is of very ancient 
origin. Iron foundries and forges, although small, 
were numerous in Bohemia in the fourteenth and fif- 
teenth centuries. They were located in forests and in 
places where iron ore was found and many of them 
are still in operation, as for example the Stara Hut 
pod Hyskovem near the city of Beroun, the forges in 
Kraliv Dvtr near Beroun, etc. At present the most 
important iron foundries are in Kladno (Prazska 
Zelezatska) in Hradek Komarov near Rokycany, in 
Rotava-Nejdek, in Trinec and in Vitkovice. In Slo- 
vakia there are government-owned foundries in 
Tisovéc, Krompachy, Prakovce near Gelnice and in 
Ztratené. Out of the 47 blast furnaces located in the 
former Austrian Empire 27 with an annual capacity 
of 1.5 million tons are now situated in the Czechoslovak 
Republic. Owing to the industrial crisis their output 
was reduced to about one-fifth of their normal capacity. 

Steel foundries are located in Vitkovice, Kladno, 
Hradek u Rokycan, Chomutov, Krompachy, Trnava 
and Nadest, other foundries in Hronec (government- 
owned), Holonkov, Dobfiva, Sobotin, Stépanov, ete. 
In 1919, 786.022 tons of steel were produced. In 
1918 the steel foundries of Czechoslovakia pro- 


04 CZECHOSLOVAKIA 


duced 58 per cent of the total output of Austria- 
Hungary. 

The engineering industry, to the development of 
which intensive agriculture and the agricultural indus- 
tries have contributed greatly, is concentrated chiefly 
in the large cities and their neighborhood. ‘The electro- 
technical industry and the manufacture of fine mechani- 
cal goods are also concentrated in the larger cities. 
The chief centers of these industries are Prague, Plzen, 
Hradec Kralové, Brno, Prostéjov, Moravska Ostrava, 
Bratislava, Kosice, Lucenec, Presov, Sered nad Vahom, 
Rimavska Sobota and numerous less important places. 
Together with the factories manufacturing automobiles, 
motor plows, locomotives, railway cars and special 
machines, this industry employs 150,000 workmen, 
and when fully employed, produces over 1,000,000 
tons of goods ina year. It occupies a foremost posi- 
tion in the manufacture of machinery and equipment 
for sugar mills, distilleries and breweries, and also 
manufactures and exports benzine and naphtha motors, 
motor plows, steam boilers and engines, and cranes. 
The production of musical and surgical instruments is 
also noteworthy. The unfavorable side of the Czecho- 
slovak engineering industry is its insufficient specializa- 
tion. Although possessing a large engineering indus- 
try, Czechoslovakia still must import various textile 
printing machines, machines needed in the dairy indus- 
try, or in the manufacture of matches, certain metal- 
working machines, etc. The factories manufacturing 
agricultural machinery number about 150 and are 
located in the central districts of Bohemia, and in 
the neighborhood of Prostéjov, Prerov and Trnava in 


INDUSTRIES 95 


Moravia. Some of these establishments export as 
much as 90 per cent of their output, now chiefly to 
the Balkans and France. 

Considerable quantities of goods are exported by 
the enamel-ware factories located in Prague, Hofovice, 
Komarov, Stara Hut u Dobfise, Plzen, Petrzalka u 
Bratislavy, Matéjovice in the Spis county and in 
Filakov and Lucenec in the county of Nové Hrady in 
Slovakia. They export from 80 to go per cent of 
their output. 

Buttons and small metal articles, needles, and foot- 
wear accessories are also manufactured extensively. 
These industries are concentrated mainly in the vicin- 
ity of greater Prague, Podmokli, Jablonec nad Jizerou 
(Gablonz) and in the Czech part of Silesia. 

The development of the Czech electrotechnical in- 
dustry, originating in 1860, was promoted by the in- 
ventions of Czech electrotechnicians. The manufacture 
of machinery for the generation and utilization of 
power is centered chiefly in Prague and its vicinity, 
in Podmokli, Brno, Mohelnice and Bratislava; the 
manufacture of other apparatus and appliances in 
Prague, Jablonné nad Orlici and Olomouc. The man- 
ufacture of cables, insulated wires and pipes is con- 
centrated in Prague, Podmokli and Bratislava; the 
manufacture of small electric appliances in Prague, 
Radotin, Mlada Boleslav; electric lighting fixtures are 
made in Prague, Liberec, and the neighboring dis- 
tricts. 

The electric lamp industry which, until recently, was 
carried on by small enterprises is now represented by 
three large concerns (located in Hloubétin, Privoz and 


96 CZECHOSLOVAKIA 


Prague). There are about 360 power plants in 
Czechoslovakia. 

The various branches of industry participated in 
1920.in Czechoslovak imports and exports as follows: 


Imports Exports 

Iron and steel, and manufactures 
ofc (quintals) oie. | eee 1,147,900 1,639,265 

Nonferrous metals and manufactures 
of Maquintals) tienen. uote meee 287,022 46,010 
MachinerveCatintals) sic aeee eee 209,178 403,824 

Electrical machinery and apparatus 
Cotta sy) yeti tee ele eee ein 56,505 11,209 
VeEnicless(uuititals) 2 ait sie oatee ce 239,775 13,502 
(pieces }iD, Sars ces aiale tee 1,190 6,626 
thns (SHINS). Pociica cee memes 10 ie ciee d 
Instruments and watches (quintals).. 6,500 13,691 
(DIECES JUG Whigs se cis lose Ram ee te ees 32,422 4I 


It has already been stated that the development of 
the important branches of industries, especially the 
engineering and the chemical industries, was greatly 
advanced by the expansion of the sugar, brewing, and 
distillery industries. The development of the brewing 
industry was very rapid in the sixties of the last cen- 
tury. At that time also many sugar refineries were 
founded, some even in places where the conditions 
were unfavorable, so that many of them had to be 
abandoned after their first campaign. Work in other 
refineries had to be stopped after the general crisis of 
1873 and in the sugar crisis of 1884. In spite of this, 
however, the sugar industry has remained one of the 
main exporting industries, and the Czech sugar is, per- 
haps with the exception of Bohemian glass, the best- 
known Czechoslovak product in the world market. In 
IQIQ, there were in Czechoslovakia 164 sugar fac- 


INDUSTRIES oy 


tories and 11 refineries. Of these concerns 113 are 
situated in Bohemia, 48 in Moravia, 6 in Silesia and 
8 in Slovakia. The largest sugar factory is in Trnava, 
Slovakia, producing about 20,000 quintals of beet 
sugar per 24 hours or 2 million quintals annually. In 
the other factories the output varies from 5,000 to 
10,000 quintals. 

The Czechoslovak alcohol industry, one of the ex- 
porting industries, shows a remarkable development, 
especially since 1860. In Czechoslovakia there are 
989 agricultural distilleries producing 167,860 hecto- 
liters; Moravia 163, producing 90,250 hectoliters; 
Silesia 100, producing 42,100 hectoliters. Of the in- 
dustrial distilleries there are 19 in Bohemia, 8 in 
Moravia, 6 in Silesia, 33 in Slovakia. Of the 48 
refineries of alcohol, 29 are engaged in the production 
of alcohol. The largest annual output of the agri- 
cultural distilleries in the years from I9IO to 1920 
amounted to 741,180 hectoliters. The industrial dis- 
tilleries produced 306,818 hectoliters of alcohol in 
1920-21. 

The manufacture of liqueurs, vinegar, and fruit 
juices and essences has made a noteworthy progress. 
Liqueurs are produced both by large and small con- 
cerns, There are 30 large establishments engaged in 
this industry. Fruit wines are produced by 24 con- 
cerns, the yearly output of which amount to 10,000 
hectoliters. The greater part of the fruit wines is 
exported to northern Europe. In 77 establishments, 
of which 11 are large ones, 3,800 tons of fruit juices 
are produced annually; one-fourth of the output is 
consumed at home. The foreign demand for these 


98 CZECHOSLOVAKIA 


products is best illustrated by the following figures: 
in 1920, 125,774 quintals of alcohol were exported; 
30,994 quintals of liqueurs, punch essences, and other 
alcoholic beverages containing sugar or other sub- 
stances; 5,111 quintals of other distilled beverages; 
1,754 quintals of cognac; 2,694 quintals of arrack and 
rum; 713 quintals of brandy; 982 quintals of vinegar ; 
10,985 quintals of fruit wines, wine and fruit cider, 
fruit juices and essences, and beverages made from 
honey. 

In Bohemia the production of beer is of ancient 
origin. Beer was first prepared privately at home, 
then, from the fourteenth to the end of the eighteenth 
century, it was produced in commercial quantities on 
a small scale. With the technical and industrial prog- 
ress in the nineteenth century, the production of beer 
developed into an important industry. In 1841, there 
were in Bohemia 1,052 breweries, but in I915-1916 
only 475 of them remained, for the competition of 
large breweries situated near the big cities had forced 
the breweries located in the country out of business. 
The Bohemian breweries are known for their modern 
equipment and the quality of their beer. There are 
663 breweries in Czechoslovakia, of which 54 belong 
to stock companies, 18 to other corporations and the 
remainder are privately owned. At present the brew- 
eries employ about 20,000 workmen. Before the war 
there were 23 large breweries producing over 100,000 
hectoliters each, the medium-sized breweries produced 
from 15,000 to 100,000 hectoliters, and the small 
breweries up to 15,000 hectoliters of beer. In tort, 
the brewery of Plzen (MéStansky pivovar), famous 


INDUSTRIES 99 


for its world-known beer, produced 969,121 hectoliters, 
and the brewery of Smichov over 600,000 hectoliters. 
In 1920, the exports of beer amounted to 295,002 
quintals and were directed chiefly to Germany and 
Austria; the imports of beer were 57,743 quintals. 

There are 203 malt factories in Czechoslovakia, 
of which 35 are controlled by stock companies and 
168 are privately owned. Barley from the Hana dis- 
trict (Moravia) and Slovak barley are known for their 
excellent qualities; the barley grown in central Bo- 
hemia is also of excellent quality. The Czechoslovak 
malt successfully competes with the German malt. 
The exports of malt in 1920 amounted to 630,421 
quintals, and went chiefly to Italy, Austria, Germany, 
Switzerland, Belgium, Norway, France and South 
America. 

The production of potato starch, dextrin, syrup and 
glucose is concentrated mostly in the hilly borderland 
along the frontier of Bohemia and Moravia and in 
the Nitra, Tékov and Spis districts of Slovakia. 

The dairy industry is chiefly in the hands of co- 
operative farmers’ associations. The largest dairies 
are located near Prague. Cheese is made mostly in 
Moravia and Slovakia (Brynza, Liptava and other 
brands of cheese are made chiefly in the districts of 
Liptava, Zvolen and Trencin). 

Noteworthy is the manufacture of candies and 
chocolate, which has an abundant supply of sugar and 
fruit. There are 80 establishments of which 25 make 
chocolate and cacao powder. The present annual out- 
put, which is still below the normal production, is about 
40,000 tons, of which about 60 per cent is exported. 


100 CZECHOSLOVAKIA 


The manufacture of marmalade grew rapidly during 
the war. There are 420 establishments (40 large ones ) 
with an annual capacity of 36,000 tons. Fruit comfits 
are made in 5 factories. There are 70 establishments 
for drying chicory, located’ mostly in Bohemia, which 
was the chief producer of chicory in former Austria. 
The chicory is prepared in 40 establishments (15 
larger ones) consuming 60,000 tons of chicory and 
producing 30,000 tons of dried chicory root. Coffee 
substitutes prepared from rye and barley are produced 
in 30 establishments, the output of which is about 
20,000 tons annually. Large establishments for mak- 
ing sauerkraut number 19, and their yearly output is 
8,000 tons. During the war, the preparation of vege- 
tables and canned meat attained considerable extent. 
The dill pickles of Znojmo and Zatec are known for 
their excellent quality. In Prague and in southern 
Bohemia the smoked meat industry is located, the 
Prague hams being known the world over. There are 
II establishments for the preparation of fish imported 
from the North and the Baltic Seas. 

In the flour milling industry a gradual process of 
transformation of small establishments into large ones 
is now under way. There are about 10,750 mills 
capable of grinding 173,000 quintals of grain in 
twenty-four hours, or about 52,500,000 quintals 
yearly. 5,280 of these mills, with a capacity of 80,610 
quintals, are in Bohemia, 2,100 are in Moravia 
(45,000 quintals), 337 in Silesia (7,300 quintals) and 
3,000 in Slovakia (40,00 quintals). In Ruthenia, with 
but a few mills, this industry is still undeveloped. The 
largest mills are found in Velky Sarys, Greater Prague, 


INDUSTRIES IOI 


Lucenec, Nitra, Bratislava, Rosice, Bohumin and 
Brnénec near Policka. Bread is made mostly in small 
bakeries, but large baking concerns and workingmen’s 
cooperative organizations are gradually taking the 
place of the small bakeries. As regards the prepara- 
tion of pastry, the Lomnice biscuits and the Horice 
rolls deserve to be mentioned. The exports of pastry 
were 3,763 quintals in 1920. Noteworthy is also the 
preparation of macaroni and noodles, which are ex- 
ported chiefly to England. The exports of these prod- 
ucts in 1920 were 1,018 quintals. 

One of the oldest branches of Czechoslovak indus- 
try is the manufacture of glass. The first glass works 
in Bohemia were founded in the early eleventh century 
by a nobleman, Gunther. In the fourteenth and fif- 
teenth centuries, glass bearing a slight green tinge was 
produced in the wooded districts of the Sumava, the 
Ore mountains, and the Krkonose. In the sixteenth 
century, glass was already cut and ground. At that 
time the manufacture of glass was penetrating from 
the borders into the interior of the land. In the fif- 
teenth century a glass factory was established in 
Prague. In the sixteenth century there were glass 
works at Falknov, Nejdek, Turnov, Cheb, Domazlice 
and in other places, especially near the Moravian fron- 
tier. In 1598, Emperor Rudolf II built a glass factory 
in Prague near the Emperor’s mill. ‘Since the end 
of the sixteenth century Bohemian hollow glass and 
pressed glass have been known for their purity, bril- 
liancy and transparency, the qualities which made Bo- 
hemian glass famous. Today Czechoslovakia has 
130 glass factories, producing hollow, cast and cut 


102 CZECHOSLOVAKIA 


glass, plate glass, photographic glass, glass tubes, watch 
crystals, glass for lighting fixtures, and bottles. Be- 
sides this there are seventeen factories producing col- 
ored and special glass. In 3,000 finishing establish- 
ments the raw glass is cut, engraved, etched, painted, 
etc. Glass refineries are concentrated mostly in Bor 
(Hajdy) and Senov, and the manufacture of glass 
jewelry in Jablonec n-N. (Gablonz). On the whole, 
however, the glass works remain mostly in their an- 
cient location. In Slovakia, glass works are located 
in the vicinity of Nové Hrady, Tékov and Gemer. 
The glass-grinding establishments are located in 
Bratislava. In Moravia the principal glass factories 
are at Kyjov, Rosice, Luzice, Velky Losin, and glass- 
grinding factories in Brno. 

The exports of glass and glassware in 1920 were 
1,400,771 quintals. The exports of porcelain in 1920 
were 155,112 quintals, valued at 197 million crowns; 
in 1921 the exports were 213,333 quintals, valued at 
313 million Czechoslovak crowns. ‘The porcelain in- 
dustry is concentrated mostly in the neighborhood of 
Karlovy Vary, but there are also other ceramic fac- 
tories, numbering about 200. This branch of industry 
exports about 70 per cent of its products in normal 
times. The manufacture of artistic pottery, carried 
on in peasant homes in eastern Moravia and elsewhere, 
should also be mentioned. The growth of the cities 
provides a steady market for building materials and 
ceramic products used for buildings. In 1920 there 
were about 3,000 establishments of this kind in the 
country, including brick yards, lime kilns, and cement 
factories. 


INDUSTRIES 103 


The extensive timber resources have made possible 
a highly developed wood and paper industry. There 
are over 3,200 sawmills, of which 650 are driven by 
steam, 50 by electricity, and the remainder by water 
power. Many sawmills in Prague, in the Sumava and 
in Slovakia specialize in the production of shingles and 
wooden cases, while the sawmills in southern and east- 
ern Bohemia, Moravia and Slovakia produce excelsior 
besides. The abundance of wood has given rise to an 
extensive manufacture of toys, boxes, furniture, go- 
carts, shades, parquetry and wooden cases. The most 
important branch of the wood industry is the manufac- 
ture of furniture, which is largely concentrated in 
Prague and in Moravia (Brno and Trebic). There 
are 50 large furniture factories and about 4,000 of 
smaller size. The manufacture of bent-wood furni- 
ture, working largely for foreign markets, is concen- 
trated in Moravia (Vsetin, Hobsov, Korycany, 
Frenstat and Uhersky Brod) and in Slovakia 
(Turciansky Sv. Martin and other places). Barrels 
made in Prague, Plzen, Most Duchcov, Hluboka and 
in Ruthenia are largely exported. The manufacture 
of whips is carried on chiefly in Slovakia (Uhrovce 
and Dolni Vestenice) and in Prague (Branik) and 
Predmérice n.L. In the Sumava near KaSperské Hory 
and Volany and in northeastern Bohemia (Nova Paka 
and Hoficko) there is an extensive wood-turning in- 
dustry manufacturing wooden faucets, wooden beads, 
spools and other accessories for the textile industry. 
Picture frames and borders are made especially in 
Prague and Ceské Budéjovice. Shoe lasts and wooden 
heels are manufactured in Holice, Vlasim and Klatovy, 


104 CZECHOSLOVAKIA 


small boxes in Orlické hory, sporting goods in 
Podkrkonosi and northern Moravia, cane goods in 
Bakov nad Jizerou and in Jindrichuvy Hradec, wicker 
goods in Brandys nad Labem, in Mélnik, Kromériz, 
Morkovicko, Vizovicko, Val. Meziri, Novoméstsko, 
Roznovsko, Trencin and Nové Mésto nad Vahom. 
The manufacture of cork is concentrated in Prague, 
Nymburk and Roudnicko. 

Wood pulp is manufactured in about 80 pulp mills 
consuming 400,000 cubic meters of wood. These mills 
are chiefly in northeastern Bohemia (Vrajt, Vrchlabi, 
Hostinné and other places) and in Slovakia (Turc. Sv. 
Martin, Ruzomberk, Zilina). There are 18 establish- 
ments making chemical pulp with an annual output of 
35,000 to 60,000 tons. Of these concerns 5 manufac- 
ture chemical pulp only (the most important are in 
Ratimov, Turé. Sv. Martin and in Zilina), while the 
remaining thirteen are connected with paper factories. 
The first paper factories in Bohemia were established 
in the fourteenth century by King Charles IV. In 
the nineteenth century the manufacture of hand-made 
paper from flax and cotton stock was largely reduced, 
while machinery production steadily increased. Paper 
was formerly made of wood pulp and cellulose; now 
it is made of wood and straw pulp to which chemical 
or rag pulp is added, according to the kind of paper 
desired. The paper factories number 76, and their 
annual output is estimated at 175,000 tons. In normal 
times the industry exports 60 per cent of the output. 
Seven of the paper factories manufacture paper for 
rotary presses (the largest are in Cesky Krumlov, 
Ceska Kamonice and in Harmanec, near Banska 


INDUSTRIES 105 


Bystrice), two factories make paper for illustrations, 
one manufactures parchment, and five concerns make 
cigarette paper. The manufacture of paper cigar hold- 
ers in Chrast near Chrudim supplies the home market 
and a part of the output is exported. 

All the 44 cardboard factories of former Austria- 
Hungary are now in Czechoslovakia, and their annual 
output is about 12,000 tons. With an abundance of 
paper the country has an extensive manufacture of 
paper goods, such as paper bags, cigar holders, cigarette 
tubes, cardboard, etc. In 1920, the exports of paper 
pulp, paper and paper products amounted to 766,057 
quintals, the imports being only 192,836 quintals. The 
value of the exports had decreased from 695.4 millions 
Czechoslovak crowns in 1920 to 654 millions in 1921, 
but still exceeded the value of the imports of paper 
and paper goods by 528.3 million, while in 1920 there 
was an excess of only 469.6 million Czechoslovak 
crowns. 

The graphic industry is highly developed and exten- 
sive. The first printing establishments in Bohemia 
were founded in the latter part of the fifteenth cen- 
tury. The progress of printing was temporarily 
halted by the Habsburg anti-reformation. In the 
years 1526-1620 there were 83 printers registered in 
Prague, and in 1740 only 10. With the religious lib- 
erty, freedom of the press and the technical progress 
of the nineteenth century a new era opened for the 
Bohemian graphic industry. The discoveries of Prof. 
Jacob Husnik in modern photogravure and of the aca- 
demic painter Karel Klic in the heliogravure are worthy 
of mention as well as those of J. Vilim, who improved 


106 CZECHOSLOVAKIA 


the method of reproduction (asphalt process). At 
the present time there are 809 printing establishments 
in Czechoslovakia, of which 462 are in Bohemia, 117 
in Moravia, 47 in Silesia and 180 in Slovakia and 
Ruthenia. The printing establishments supply mostly 
the home needs, but the graphic institutions, especially 
those making cuts for reproductions receive large 
orders from abroad. Postal cards and pictures are 
also largely exported. In 1920 and 1921, the imports 
of literary and art works were 226.5, and 223.14 mil- 
lion Czechoslovak crowns, the exports 72.2 and 64.64 
million Czechoslovak crowns. 

The chemical industry is well developed. The 
largest chemical establishment, the Spolek pro 
chemickou a hutni vyrobu v Usti nad Labem (Cor- 
poration for Chemical and Metallurgical Production 
in Usti nad Labem), was founded in 1857. The chief 
establishments for the manufacture of fertilizers are 
at Kolin, Slané, Prague, Prerov, Mor. Ostrava, 
Vitkovice, Sepov, Opatovice, Sered nad Vahom, 
Zilina, Lucenec and Kostolany. There are 25 of these 
establishments, and their output completely supplies 
the needs of the country.. Many establishments are 
engaged in the manufacture of paints, lacquers, es- 
sences, acids, vaseline, creams, polishes, soap, candles, 
perfumery and other toilet articles, tar, and rubber 
and celluloid articles, inks, chemical paper and other 
chemical products, etc. The production of acetic acid 
is concentrated mostly in Ruthenia (Velky Bockov) 
and in Dobra Voda and Smolenice in Slovakia. There 
is also an important production of edible and indus- 
trial fats and oils (Lovosice, Bratislava, Pardubice, 


INDUSTRIES 107 


Prague, Usti nad Labem) and of explosives (Brati- 
slava, Prague and Semtin). The manufacturers of 
fireworks and matches have organized the joint-stock 
company “Solo.” The Czechoslovak mineral oil in- 
dustry has 7 large establishments situated on the banks 
of the rivers Labe (Elbe), Danube, and the Odra 
(Pardubice, Kralupy, Kolin, Bohumin, Sumperk, 
Bratislava and Kezmarok). This industry imports the 
raw materials from abroad. 

Among the products mentioned above, the group of 
candles, soap and wax products showed in I9g2I an 
excess of exports amounting to 14 million crowns; 
matches and explosives, an excess of 77.9 million 
crowns. 

The manufacture of leather has been carried on 
since the earliest times. Due to the invention of new 
machinery during the last thirty years, the industry 
has made rapid progress. Czechoslovakia has two- 
thirds of the total leather industry of former Austria- 
Hungary. There are 260 leather factories situated 
in Prague, Kralové Hradec, Trebachovice, Trymisté 
nad Orlici, Kostelec nad Orlici, Liberec, Ceska Lipa, 
Chabarovice, Varnsdorf, Klatovy, Plzen, Susice, Pisek, 
Tabor, Ceska Skalice, Litoméfice, Budyti, Lipt. Svaty 
Mikulas, Brezova, Bratislava, Nové Zamky, Trebic, 
Hodonin, Zlin, Olomouc. 

The production of hand-made shoes in Czecho- 
slovakia is still considerable, yet modern machinery 
is taking the place of hand labor. Of the daily output 
of the shoe industry, estimated at 80,000 pairs of 
shoes, about 65 per cent is made by machinery. The 
centers of the shoe industry are Prague, Pardubice, 


108 CZECHOSLOVAKIA 


Chrudim, Brno, Prostéjov, Zlin and Jihlava. The 
glove industry is concentrated in Prague and in the 
Rudohofi. With the Prague glove industry is asso- 
ciated the home production of sewed gloves in the 
neighborhood of Dobris and Pribram. Washable 
gloves and deerskin gloves are made in Kadan. There 
are 52 glove factories and about 130 smaller establish- 
ments in the country. Before the war the exports of 
gloves amounted to 90 per cent of the production. 
Leather bags and saddles are now made mostly by 
machinery. Noteworthy is the manufacture of leather 
notions and leggings. In 1920, 28,255 quintals of 
leather and leather goods were exported and 24,234 
quintals imported. In 1920 the value of the exports 
was 275.25 million crowns higher than the value of 
the imports, in 1921 the excess was 481.35 million 
crowns. 

The weaving industry is well developed and con- 
sumes large quantities of cotton and flax. The cen- 
ter of this industry is in northern Bohemia and in 
the districts of Prague and Liberec. The wool in- 
dustry is concentrated in Krnov and Humpolec, the 
flax industry in Trutnov, Rumberk and Sumperk, 
the silk industry in northern Moravia, the manufac- 
ture of clothing and millinery in the district of Pros- 
téjov, embroideries are made in Kraslice, Chrudim 
and Zabreh, Telec, Uh. Hradisté, Straznice, and bob- 
binet laces are manufactured in the Rudohori, and gal- 
loons and trimmings in Vejprty. 

The manufacture of hats is carried on especially 
in Moravia (Prostéjov, Boskovice, Novy Jicin), the 
manufacture of straw and felt hats is a home indus- 


INDUSTRIES 109 


try in the distrcits of Prostéjov, Hradistsko and Han- 
acko. Czechoslovakia possesses over 80 per cent of 
the textile industry of the former Habsburg mon- 
archy. The Prostéjov district, with a staff of highly 
skilled workers, now manufactures very fine textile 
goods although before the war only the common 
grades were made there. 

The following figures relating to the value of the 
Czechoslovak foreign trade show the importance of 
the textile industry (in million Czechoslovak crowns) : 














1920 1921 
Imports Exports Imports Exports 
Cotton, and manufactures of...... 5,029.84 2,525.61 3,446.55 3,801.56 
Plax ihemp, astute ses ceils oleae stesiets 211-35 350.96 507.40 422.41 
Wool, and manufactures of........ 2,211.53 6,683.76 2,125.48 4,104.01 
Silk, and manufactures of......... 299.36 151.96 475.81 450.71 
Clothing and: millinery ¢.0. 0s. 4s «'« 591.12 904.82 63.96 793-09 


The general position of the Czechoslovak indus- 
tries in 1920 is shown by the following figures of 
imports and exports (figures in brackets show 
percentages ) : 


Imports Exports 
Products of agriculture, 
forestry, and the fish- 
Cries se aiuintals vi. 3,986,421.09 (10.2)  7,392,146.21 (10.7) 
DICCES Seen arses 24,550 (9.6) 1,336 (0.1) 
Mine and foundry prod- 
lictstariintalse. 252 26,822,324 (68.6) 48,137,583 (69.7) 
Manufactures: quintals 8,292,813.52 (21.2) 13,492,410.35 (19.6) 
DICCOS Sor eee afl 231,252 (90.4). 2,645,532 (99.9) 


The Czechoslovak industries still have great pos- 
sibilities of development and the industrial activities 
of Czechoslovakia may be expected to expand when 
the political and economic conditions in Europe have 
become normal. 


VIL 
FOREIGN TRADE 


Dr. Fr. PeroutKa, Division CHIEF IN THE MINISTRY OF 
CoMMERCE 


Intensive agriculture and prosperous industries have 
enabled Czechoslovakia to build up an extensive foreign 
trade. The balance of trade is, on the whole, favor- 
able. The country has to import foodstuffs and raw 
materials needed in the industries, and exports indus- 
trial products in return. Many branches of industry 
have to seek foreign markets for as much as fifty 
to ninety per cent of their products. 

Before the war, in the territory of the present 
Czechoslovak Republic, about 10.2 million metric quin- 
tals of wheat were cultivated, 15.3 million quintals 
of rye, and 15.2 million quintals of barley. After 
the war, the harvest of wheat in 1920 was 7.1 million 
quintals, in 1921 10,528,000 /quintals, in 1922 
9,150,000 quintals, but, as it is necessary to keep about 
1.2 million quintals for sowing, the production does 
not cover home consumption (80-90 kilograms per 
head annually). In the case of rye (home consump- 
tion per head about 100 kilograms yearly and about 
1.8 million quintals needed for sowing) Czechoslo- 
vakia would be self-supporting provided the harvest 
were normal. But the harvest in 1920 was only 8.2 

IIo 


FOREIGN TRADE III 


million quintals, in I192I 13,649,000 quintals and in 
1922 12,979,000 quintals. 

The area sown to barley in Czechoslovakia is 40 
per cent, and the crop 50 per cent, of the correspond- 
ing totals for Austria-Hungary. Barley is the prin- 
cipal cereal exported from Czechoslovakia. It is ex- 
ported in the grain or in the form of malt; about three 
million quintals are exported annually. The crop of 
barley in 1920 was 7,980,000, in 1921 10,336,000 and 
in 1922 10,092,000 quintals. 

With the normal production of oats, which is 16.4 
million quintals, the State is self-supporting, but even 
in the years of poor harvests the importation of oats 
is not absolutely necessary, as other fodder can be 
substituted. The crop of oats in 1920 was 8,500,000, 
in I192I 10,754,000, and 1922 10,386,000 quintals. 


IMPORTS OF GRAIN, FLOUR, AND RICE INTO 


CZECHOSLOVAKIA 
(In metric quintals of 220.46 pounds) 
1920 1921 1922 
RV MOA GHGs cede cde coe sanic cs cpke T3058 1,388,729 337,584 
Pe VTi a dais cla cite 6 eae ois 248,219 745,606 97,021 
SAT LOVERS ealae co ecie o owed 6 kine 160 10,648 21177, 
EERO ee ire eh ieee 643 145,105 194,458 
Cori ieee ew a'ee Peres Cat Tee Oa 1,988,674 987,432 
WVTGALMIOUE Nt aan c cess e's ote 1,595,608 2,775,982 2,074,643 
Rv@rnodignws ceca ccc cose o's 39,985 77,444 146,639 
IRICE Stee crs outer neat each 6p 0. 240,897 6,283 411,429 
Mialtyn an cutee sis sus weis'e aes «6 3,886 3,278 46 
EXPORTS : 
Barlevii<;iaaenras Pata Canes 7,441 27,305 1,349,402 
CRATE oe Me wiatete ay aiets Bieta ets al 113,843 36,515 2,198 
BALE, Sate crete era eran ie 630,421 283,400 553,713 


The crop of sugar beets in 1920 was 47., in 1921 
almost 48., and in 1922 52.4 million quintals. The 


1I2 CZECHOSLOVAKIA 


production of sugar in Czechoslovakia, expressed in 
terms of raw, was 722,995 metric tons in the season 
of 1920-21 ; 662,928 tons in 1921-22, and 736,034 tons 
in 1922-23. The production of 1922-23 included 
630,386 tons of refined and 17,394 tons of raw sugar. 
The sugar industry is well developed and has an ex- 
cellent commercial and banking organization. Refined 
sugar is one of the principal articles of the Czecho- 
slovak export trade. 


EXPORTS OF SUGAR 


Czechoslovak 
Quintals (crowns) 
thousand million 
T9200... cecsccsccceccscccsccece 2,400 3,405 
Ig2I eeeeee fe@eeeooeaoooeo eee ee @ @eeeee0 4,570 3,749 
TOAD A. cits wale coe ese msecks 3,203 1,400 
TO2 Fa LCK e's Salaid od pie simte oo alate 5,193 1,884 


Other agricultural exports are hops, clover seed, 
grass seed, sugar beet, chicory roots, cabbages, cucum- 
bers, fruits (early pears and apples). 


Hops 
harvested Exported 
quintals quintals 
TORO ees ce tle APRON Ep ae ne 67,863 
TORT eecse an hale Saaletetins < MZOLCAS 30,352 
1922....e0ee nt eee cececcesececs 56,421 48,129 
EOS3 Moet nicl, sic Ut eaiers 30,900 30,963 


The rich harvest of potatoes (in 1920 49 million 
quintals, in I92I 43,292,000 quintals, in 1922 90,692,- 
ooo quintals) is the basis for the alcohol industry and 
for the manufacture of starch. Alcohol is exported 
in large quantities to Germany and Austria. The 
starch industry produces about 450,000 metric tons 
of starch annually which is more than is needed for 
home consumption. The high grade of the Zatec 


FOREIGN TRADE 113 


hops and of the Czech and Moravian malting barley 
guarantee good qualities of beer. The total produc- 
tion of beer is much smaller now than before the war; 
the exports were 295,000 quintals in 1920; 256,800 
quintals in 1921, and 71,222 quintals in 1922. Beer 
is exported chiefly to Germany, Italy and Austria. 
Czechoslovakia imports cattle, hogs, and meat 
chiefly from Yugoslavia and Rumania; lard from 
the United States; butter from Denmark; margarine 
from the Netherlands; wine from Hungary, Italy, 
Austria, and France. In 1920, 4,198 head of cattle 
and 12,564 hogs were imported; in 1921 3,280 head 
of cattle and 26,838 hogs; and in 1922 94,762 head 
of cattle and 258,308 hogs. The increase in the im- 
ports in 1922 is due to a more liberal policy in mat- 
ters of supply. The imports of lard and bacon were 
132,354 quintals in 1920, 256,590 quintals in 1921, and 
442,989 quintals in 1922. Before the war, Prague 
hams were largely exported. For the manufacture 
of artificial fats large quantities of raw material are 
imported (copra, palm kernels, and vegetable oils). 
The imports of wines amounted in 1920 to about 
460,000 quintals, in 1920, about 270,000 quintals in 
1921, and 165,000 quintals in 1922; the production 
of wine, namely in Slovakia and in Carpathian Ruth- 
enia, is about 450,000 hectoliters annually. Czechoslo- 
vak mineral waters are exported in large quantities. 
The chocolate industry imported for manufacturing 
purposes in 1921 about 40,000 quintals of raw cacao 
and in 1922 38,000 quintals, but this industry has 
almost no exports. The Government tobacco fac- 
tories manufacture annually over 100,000 quintals of 


114 CZECHOSLOVAKIA 


tobacco, exclusively for home consumption. In 1922 
the imports of leaf tobacco were 261,734 quintals. 

The annual yield of timber exceeds 10 million 
cubic meters of which the larger part is soft wood 
used for fuel, construction, and the manufacture of 
wood pulp. Hardwood is used for the manufacture of 
railroad ties, furniture, etc. 


EXPORTS 
(In quintals) 
1920 1921 1922 

Firewood Gaines cee siaeian 2,331,703 5,653,001 2,345,938 
Minectimberseccs teen eke 1,002,761 1,435,220 3,334,763 
HUIDPWOOU Secu meh eats 639,113 870,044 5,166,499 
Construction timber and 

Tater cin wives aie ele ae 4,604,921 5,978,763 11,441,178 
Ratlroad tres une ae cent 3,958 61,903 61,806 


Coal is imported from Germany and Poland, while 
lignite, briquettes and coke are exported largely to 
Austria, Hungary, Poland, Rumania and Yugoslavia. 


Imports Exports 
(in million quintals) 
1920 1921 1922 1920 Ig21I 1922 
TAORiLe WR ike Cones 0.4 0.2 0.2 33:9 44.4 34.6 
(Gale en ae ate ley: x33 9.5 5.2 6.9) 12,0 510.4 
COK Gia ner ng ait Ti I.I 0.9 rs 3.0 3.5 
BPIGUeltesiees ccs clea ci ef hs een ddal TOs 1.7 1.4 


The output of pig iron is at present very low largely 
on account of the high price of coke. Consequently, 
for the manufacture of steel and malleable iron, scrap 
and imported materials are used to a large extent. In 
the engineering industry the manufacture of motors 
of all kinds is important as well as the manufacture 
of machinery for sugar mills, breweries, and distil- 
leries, and the manufacture of agricultural imple- 
ments. The development of the electro-technical in- 


FOREIGN TRADE 


II5 


dustry is very promising but the output is insufficient 
to cover the home needs, and the imports from Ger- 
many and Austria are large. The automobile industry, 
technically perfect, is handicapped by the relatively 


small market. 
FOREIGN TRADE 


1920 
(In quintals) 


Imports Exports 
Iron and steel and manufactures of.... 1,147,900 1,639,265 
Nonferrous metals and metal wares.... 287,022 46,010 
WVLACIINEEV rat Jetta casein Scie watelens Raney 299,178 403,824 
Electric machinery and apparatus...... 56,505 11,209 
1921 
Iron and steel and manufactures of.... 1,228,481 i 2,034,806 
Nonferrous metals and metal wares.... 241,431 70,495 
DIACHINEL Vince eee Tee Me Coes sata 254,423 498,116 
Electric machinery and apparatus...... 64,777 18,069 
1922 
Iron and steel and manufactures of.... 2,198,587 ; 1,963,741 
Nonferrous metals and metal wares.... 262,554 65,892 
EET INOLU eet eee ead Lie oedeiataate 249,503 301,803 
Electric machinery and apparatus...... 37,585 9,488 
VALUE IN MILLIONS OF CZECHOSLOVAK CROWNS 
Imports aE eiorts 
Iron and steel and manufactures of......... 930 1,511 
Nonferrous metals and metal wares........ 766 344 
LA CHSMOr Vane ered erates ails wretch s RA 560 558 
Electric machinery and apparatus.......... 769 124 
Vehicles ..... Steterste eh Le Werciaie eee aN is sie een eek 53 
1921 
Iron and steel and manufactures of........ 541 1,369 
Nonferrous metals and metal wares...... A CES 4It 
Dia CHINGH Vertes clear ne ola haale cine bro ses SP 544 905 
Electric machinery and apparatus.......... 753 173 
MERICIESi cena tre eerek eek cobs eae iate'e's 104 52 
1922 
Iron and steel and manufactures of........ 430 768 
Nonferrous metals and metal wares........ 379 243 
DLACHINELYV sos eee Ce A oR ae ea ee eee 353 204 
Electric machinery and apparatus.......... 206 64 
MenICleg en ae Pattee aa ae he ae ale a bck 72 18 


116 CZECHOSLOVAKIA 


The textile industry originated and developed in 
the former empire which, with a population of 56 mil- 
lion, was a large open market. Even then the textile 
industry was dependent on exports. It is much more 
dependent on exports now, when the home market has 
been reduced to one-fourth its former size and when 
the industry must seek foreign markets for as much 
as three-fourths or four-fifths of its production. The 
manufacture of artificial silk established after the war 
will make imports unnecessary. 

VALUE OF THE IMPORTS AND EXPORTS OF TEXTILE PRODUCTS 
(in million Czechoslovak crowns) 


1920 
Imports Exports 


Cotton and manufactures of cotton......... 5,030 2,526 
Flax, hemp, jute and manufactures of....... 311 351 
Wool and manufactures of wool....... Seer ontaele 6,684 
Silk and manufactures of silk..... wore re etnes 299 152 
Clothing and millinery........... La UAL Pe 5oI 905 
1921 
Cotton and manufactures of cotton.....e.+. 3,447 3,802 
Flax, hemp, jute and manufactures of....... 507 422 
Wool and manufactures of wool.:...ccccecese 2225 4,104 
mile ANC sAMIACEITeS| OF Silmioew ae eee eee cate 476 451 
Clothingeand millinery...... Sete eeeenean es 64 793 
1922 
Cotton and manufactures of cotton....eeseee 15072 ; 2,566 
Flax, hemp, jute and manufactures of....... 2096 374 
Wool and manufactures of wool......seseee- 1,606 2,807 
Silk and manufactures of silk..... CaWtakis ed clea Ci eOn 204 
Clothing iaitidomillinerye, oes ekis ses wale cies dele 48 500 


The glass industry, having about 400 establishments, 
some of them of world-wide reputation, has a tradi- 
tion of many generations. The glass works are located 
chiefly in the coal regions or in the forests; the glass 
refineries are scattered through the mountain valleys. 
The sand needed for the clearest glass is imported from 
Saxony while the necessary fluxes (sodium carbonate 


FOREIGN TRADE 117) 


and sulphate, potash) are produced by local industries. 
The annual production of hollow glass is estimated at 
415,000 tons, of window and plate glass at 131,800 
tons, and of special glass at 187,000 tons. The value of 
all the glass manufactured in 1920 was estimated at 
1,898 million Czechoslovak crowns, in 1921 at 2,072 
million Czechoslovak crowns. 

The porcelain industry, concentrated in the vicinity 
of the watering place of Karlovy Vary (Carlsbad) 
where kaolin is found and fuel can be obtained from a 
lignite field nearby, is largely an exporting industry. 
The value of poreclain and earthenware exported in 
1920 was 295 million Czechoslovak crowns and in 1921 
488 million Czechoslovak crowns. China clay is also 
exported to Germany. 

The leather industry has about 260 factories capable 
to work 150,000 cattle hides weekly. The manufacture 
of leather soles is an old branch of this industry; the 
manufacture of shoe uppers of chrome leather has also 
been established. The shoe industry, when fully em- 
ployed, produces about 40 million pairs of shoes an- 
nually and exports three-fourths of its output. The 
glove industry also has an extensive export trade and 
old business connections with the western countries. 
The imports of leather and leather goods in 1920 
were valued at 367 million Czechoslovak crowns, and 
in 1921 at.381 million Czechoslovak crowns; the ex- 
ports in 1920 amounted to 642 million Czechoslovak 
crowns, and in I921 to 862 million Czechoslovak 
crowns. In 1922 the imports were 126, and the ex- 
ports 479 million. 

The paper industry is working under favorable 
conditions because it has an abundance of the necessary 


118 CZECHOSLOVAKIA 


timber and a great number of factories manufacturing 
chemical woodpulp. The printing and graphic indus- 
tries have establishments of world-wide reputation. 
Both of these branches of industry have a large for- 
eign trade. In 1920 imports of pulp, paper, and paper 
wares were valued at 226 million Czechoslovak crowns, 
the exports at 695 million Czechoslovak crowns; 
in I921 the imports were 126 million Czechoslovak 
crowns and the exports 654 million Czechoslovak 
crowns. 

The chemical industry is represented by several large 
establishments which export sulphuric acid, muriatic 
acid, calcium carbide, white-lead, glue, etc. Many 
small establishments manufacture varnishes and paints, 
pastes, etc. The soap industry is very highly developed 
as is also the manufacture of fertilizers. The latter 
now uses annually about 50,000 tons of natural phos- 
phates, but the imports of the finished products are 
still greater. The trade balance of the chemical indus- 
try is rather unfavorable, because the consumption of 
chemicals in the textile and the leather industries, and 
of drugs, is large and must be covered by imports, 
largely from Germany. Mineral oils also must be im- 
ported. Ina large measure these are imported refined, 
as the home refineries have difficulties in obtaining 
crude petroleum from Poland and Rumania. The 
imports in I920 were 1,318,315 quintals, in 1921 
1,061,020 quintals, in 1922 991,161 quintals. 

There is also a large group of special industries, 
working for the most part for exports. These include 
the manufacture of pinchbeck jewelry concentrated in 
the district of the glass industry of Jablonec, the man- 


FOREIGN TRADE 119 


ufacture of buttons, enameled ware, pencils, matches, 
bent-wood furniture, musical instruments, linen, 
cravats, hats, laces, and embroidery. 

The development of the foreign trade since the estab- 
lishment of the Republic in 1918 is interesting. 

The statistics for the year 1919 were based on 
the declarations of importers and exporters submitted 
with the applications for export or import permits. 
According to these statistics the imports totaled 6,555 
million Czechoslovak crowns and the exports 5,323 mil- 
lion Czechoslovak crowns. The unfavorable balance 
of trade was due to the exhaustion of the country 
which was almost bare of foodstuffs and of raw ma- 
terials needed for its industries. Grain and flour were 
imported to the amount of 1,444 million Czechoslovak 
crowns; fats for 845 million Czechoslovak crowns; 
other foodstuffs, beverages, spices, coffee, etc., for 
471 million Czechoslovak crowns. The raw materials 
imported included : cotton for 918 million Czechoslovak 
crowns, wool for 554 million Czechoslovak crowns, 
hides for 230 million Czechoslovak crowns. These 
imports were paid for with the exports of sugar (1,571 
million Czechoslovak crowns); wood and coal (614 
million Czechoslovak crowns); hops, malt, seeds, etc. 
(564 million Czechoslovak crowns) ; glass, iron wares, 
etc. It is interesting to note that the United States of 
America held the first place in Czechoslovak imports 
(1,868 million Czechoslovak crowns) ; foodstuffs and 
raw materials for the textile industry were the chief 
imports. For the same reason the imports from Italy 
and Switzerland were unusually large. The exports 
were directed chiefly to Germany and Austria; Vienna, 


120 CZECHOSLOVAKIA 


a great distributing center, buys Czechoslovak prod- 
ucts largely for re-exports. The western countries 
bought chiefly Czechoslovak sugar. The statistics of 
IQIQ are not a picture of commerce in its natural con- 
tinuity. In the first half of the year 1919 Czechoslo- 
vakia, had only one possibility of shipping its goods 
and that was by way of Trieste. The first raw materials 
and semi-manufactured products for the textile in- 
dustry were bought in Italy, and large purchases were 
also made from liquidation of war supplies in France. 
Transportation by the river Labe (Elbe) was not pos- 
sible until May 1919. It was almost impossible to 
trade with Rumania and Yugoslavia, as the means 
of transportation were lacking. The trade with 
Hungary and Poland was handicapped by political 
tension. All trade was hampered by a strict system 
of control of imports and exports and by restrictions 
imposed on dealing in foreign exchange. 

The following two years, 1920 and I92I were a 
period of export expansion. The exchange value of 
the Czechoslovak crown was low, the prices of Czecho- 
slovak products in the world markets were low and 
attracted foreign buyers, speculators, manufacturers 
and business men who were tempted by the profits on 
exchange. The industry renewed its activities when 
supplies of raw materials were received but there was 
a shortage of coal at times. The balance of trade 
for those two years was favorable. The statistics for 
1920 and 1921 are based on declarations of the quan- 
tity of exported goods, which are submitted to the 
custom offices. The value of exports is then estimated 
by the commission of experts composed of manufac- 


FOREIGN TRADE 121 


turers and business men connected with the State Bu- 
reau of Statistics. 
FOREIGN TRADE ACCORDING TO QUANTITIES 


Imports Exports 
tons tons 
LOST Hee eee aaah. om 3,001,174 9,742,735 
pe bh Bale An PL ee aoe 3,194,215 9,490,262 


FOREIGN TRADE ACCORDING TO VALUE 
(in million Czechoslovak crowns) 


Excess 
Imports Exports of exports 
TOC Ree ets ae stein ate os 23,384 27,509 4,185 
VOQQT Se eed o cloeekae piste cers 22,433 O7 3311 4,878 
TODS Sates isi eee a at 12,695 18,086 5,301 


In the first half of 1923, Czechoslovakia foreign 
trade was recovering from the decline sustained in the 
second half of 1922, when signs of a certain unsteadi- 
ness appeared after the sudden rise of the crown which 
increased the difficulties of trading with countries with 
depreciated currencies. 

Statistics of foreign trade as regards the country of 
origin and destination are as follows: 





1920 





Imports Exports 
(million (million 
Cecho- Czecho- 
(million slovak (million slovak 
quintals) crowns) quintals) crowns) 
Gernianvy conti .s.cc% oo 20.8 5,004 30.9 3,330 
VA TICLT LAME is ate os ek cee ca i 3,042 23.9 9,678 
EAs a © Venere ti cence oo cs 0.8 656 3.2 Zri2 
Winitenistateger, onus: aT 4,111 0.2 544 
Braces eee ias oe ees 0.2 955 1.9 23374 
Poland sh varteses fakes 1.0 399 ey 1,425 
Tta ly ra aah tae iar os 0.5 1,003 7 1,301 
Holland yay ance eres 0.6 1,316 0.6 557 
Belgium and Luxemburg 08 1,038 0.08 135 
United Kingdom ........ 0.3 1,009 0.2 135 
RMimanis: 7: cu Ne ee Rees 0.5 308 0.3 732 
MugoSslaVia ys. oes see eo 0.3 340 0.6 1,082 


Switzerleand ("sf .....> 0.1 625 0.9 766 


122 CZECHOSLOVAKIA 


1921 








Imports Exports 

(million (million 

Czecho- Czecho- 

(million slovak (million slovak 

quintals) crowns) quintals) crowns) 

Ferma ny vo asicce aaulereuan los 18.9 5,862 36.2 3,061 
ACISUTIA Su. cote eee eats ne 1,983 33.4 7,935 
PTTL aN Vid olen 5 ee Oe cs 2.5 926 13.3 3,066 
United Statesit cic icon. 3.8 4,547 0.2 771 
GATICE GS Paseo wits Solensaee ae 0.3 638 ele, 1307, 
Polanda conc On save ont 1.4 384 3.6 1,424 
Tea Pre ane che Bastin pie 0.8 733 1.4 921 
Holand etic at merece 0.9 1,106 0.8 567 
Belgium and Luxemburg 0.4 447 0.3 204 
United Kingdom ........ 0.9 1,342 1.5 2,104 
Riuianiag ee cu are otek 0.9 482 0.8 1,175 
Virrnslavigni sat case cate 0.6 367 123 2,008 
Switzerland et. este tiwes 0.06 316 0.8 520 


The largest turnover is shown in the trade with 
Germany and Austria, and with the States which were 
formerly part of Austria-Hungary. In trade with 
Germany, Czechoslovakia has an unfavorable balance 
due largely to the imports of iron ware, machines, 
electro-technical articles, chemicals, dyes, drugs, tex- 
tiles, etc. On the other hand, there is a large favorable 
balance with Austria resulting from the exports of 
coal, sugar, textiles, glass, porcelain, etc., largely for 
re-export. The large unfavorable balance in the trade 
with America is caused by the purchase of raw mate- 
rials and foodstuffs. The difference is made up by 
exports to other countries. 


BY QUANTITIES THE CZECHOSLOVAK FOREIGN TRADE WAS 
DISTRIBUTED AS FOLLOWS: 


(per cent) 
Imports Exports 
| TO2O0 se 1O2T ) sIG22 1920), TQo2t 1922 
Raw. cmatetials a nc.) sinus 78.8 78.5 74.0 80.4 82.6 81.0 
Semi-manufactured goods 7.3 6.2 II.I 8.0 7.7 ae 


Mantfacttires))) 0.05 cus us 03:0/715-3 9114.0 11.6 | {10:37 7.e3 


FOREIGN TRADE 123 


ACCORDING TO VALUE: 


RAW Materials 1. vse asc ss BZ 5ST. Bal 10.8 14.3 I9Q.1 
Semi-manufactured goods. 14.3 12.3 13.3 16.07710:359,17.0 
NANULACUTES aay ce bic des 41.5 34.0 29.6 78.3 75.4 63.9 


The distribution of the imports and exports of mer- 
chandise according to the branches of production is 
shown in the following table: 


(per cent) 
Imports Experts 
Agricultural and forest products.............. 10.2 10.7 
Products of the mines and foundries........... 68.6 69.7 
ATOMS ria LOONCES iG Gauche citi ca eHininiee eres 21.2 19.6 


These figures have been calculated according to 
weight. 

All these statistics show that Czechoslovakia is a 
country of intensive agricultural and industrial produc- 
tion and, to a large extent, an exporting country. The 
high standard of living makes necessary the importa- 
tion of large quantities of foreign goods, particularly 
raw materials and foodstuffs. 

The geographical situation of Czechoslovakia in the 
center of Europe and the fact that the country had 
been a part of the customs union of Austria-Hun- 
gary explain why the trade with foreign countries has 
not developed in all branches on an independent basis. 
Prague formerly had an important wholesale trade in 
coffee and colonial produce but in the customs union 
of Austria-Hungary this trade was directed to Trieste 
through differential duties. This trade is now de- 
veloping very promisingly. 

One branch of the textile industry purchases cotton 
and wool directly on the foreign exchanges. Smaller 
establishments make their purchases in Bremen. That 
explains why the American statistics, for example, do 


724. CZECHOSLOVAKIA 


not show the total exports of cotton to Czechoslovakia. 
Metals and other raw materials are in general pur- 
chased through wholesale houses (in Berlin, Frankfort, 
Hamburg). The great American firms furnish daily 
quotations on copper only to the larger commercial 
centers of Europe. In many other branches the small 
concerns prefer to buy in smaller quantities from Ger- 
man wholesale houses as they can easily calculate the 
purchasing price and cost of transportation. Many 
exporting industries have their own selling organiza- 
tions, as the sugar, malt, alcohol, and enamel ware 
industries. Large establishments dealing in glass, 
porcelain, chemicals, and textile products, have their 
own connections and representatives abroad. The ex- 
port trade of Jablonec negotiates the exports of its 
products directly to all parts of the world. Several 
makes of agricultural implements, plows and sowing 
machines, were popular before the war throughout the 
Balkans, Russia, and Siberia. Several large estab- 
lishments of this kind have now formed a united sell- 
ing organization affiliated with the engineering indus- 
try. The iron industry which previously had been in 
a cartel with the Austrian iron industry now has an 
independent sales organization. Sometimes foreign 
buyers come directly to the place of production, as, 
for instance, in the case of the Zatec hops. In some 
cases the producers sell the goods to German exporters, 
especially in Berlin and Hamburg, hops in Nuremberg, 
etc. The Czechoslovak industry makes large export 
and import transactions at the Leipzig fair. The 
textile industries of cotton and silk have their own 
sales branches and warehouses in Vienna and direct 


FOREIGN TRADE 125 


the shipments to the Balkan countries from that 
city. 

It has been the aim, during the last years, to 
establish our own wholesale houses and to make direct 
connections in import and export. For the dissemina- 
tion of trade information and the promotion of direct 
trade connection, sample fairs have been organized on 
a larger scale in Prague, in Liberec (here the textile 
trade is largely represented) and in Bratislava. The 
Prague Sample Fairs which have been held so far 
have attracted large numbers of visitors, especially 
from Yugoslavia and Rumania. For commercial pur- 
poses the waterways are also being used, namely the 
Labe (Elbe) for transportation to Hamburg, and 
the Danube. The port of Bratislava on the Danube 
is rapidly becoming a distributing center for trade 
with the Balkans. The Danube may in the future 
become an important highway for the importation of 
grain. Swedish ore for the ironworks in Ostrava- 
Karvin is transported by way of the Odra (Oder) to the 
transfer point of Kozli (Kosel). The imports by water 
amount to about 17 per cent and the exports to 13 
per cent of the total trade by weight. The greater 
part of water-borne traffic is directed by way of the 
Labe. 

Recent statistics show that the Czechoslovak exports 
to the western countries are steadily increasing. The 
chief articles of this increasing trade are sugar, timber, 
glass, porcelain, malt, paper, matches, and machinery. 
The trade with Hungary, Poland, Rumania and Yugo- 
slavia has temporarily declined because of the appreci- 
ation of the Czechoslovak crown. The exports of 


126 CZECHOSLOVAKIA 


Czechoslovak products to the western countries have 
stimulated also the imports from that part of Europe, 
as, for example, from France, Netherlands and Switz- 
erland. It appears also that the other succession States 
of former Austria-Hungary are endeavoring to build 
up their own industries as their home market, protected 
by high duties, offers favorable opportunities. The 
Czechoslovak industries, producing largely for export, 
will doubtless seek to meet the new conditions by im- 
proving the quality of their products and by greater 
specialization. 


IX 


THE COMMERCIAL POLICY AND THE TARIFF 


Dr. Fr. PeroutKa, Division CHIEF IN THE MINISTRY OF 
CoM MERCE 


As soon as the new State had been established, Octo- 
ber 28, 1918, the transit of goods across the new 
frontiers of the Czechoslovak Republic was subjected 
to control, though Czechoslovakia was not organized 
as an independent customs territory until the passage 
of the law of February 20, 1919, defining the customs 
territory and providing for the collection of duties. 
The old customs frontier was retained as against 
Germany, while a new frontier line was gradually de- 
veloped as against Austria, Hungary, and Poland. Un- 
der the law of February 20, 1919, duties were to be 
levied also on goods coming from the other territories 
of the former Austria-Hungary which had in the 
past formed a single customs territory with Czecho- 
slovakia. The old organization of the customs service, 
based on the experience of many decades, was re- 
tained. 

The duties on goods imported into Czechoslovakia 
were to be paid in gold, at the old rates fixed by the 
autonomous tariff of 1906. However, under the law 
of February 20, 1919, the Minister of Finance was 

127 


128 CZECHOSLOVAKIA 


authorized, with the consent of the Ministers of Com- 
merce and of Agriculture, temporarily to reduce or 
abolish duties on certain classes of necessaries. The 
goods which were subsequently placed on the free list 
included grain, flour, seeds, cattle, animal products, fats, 
and various raw materials, such as minerals, carving 
materials, tanning materials, gums and resins, crude 
mineral oils, etc. The old prewar rates were retained 
for semi-manufactured articles and certain other needed 
commodities. In the case of other goods the prewar 
rates were increased by an exchange surtax amounting 
to 200 per cent, excepting only articles of luxury (the 
duties on which the Minister of Finance might have 
collected in francs) for which the surtax was fixed at 
220 per cent. Inasmuch as the currency of Czechoslo- 
vakia then naturally stood far below its gold parity 
and its exchange value declined still further in the 
course of the years 1919 and 1920, it will be easily seen 
that, in comparison with prewar conditions, tariff pro- 
tection had been largely reduced. 

In those days, however, all imports and exports were 
partially and still are controlled through a system of 
permits. No goods could cross the frontier except 
under a special permit issued by the Czechoslovak Im- 
port and Export Commission organized under an 
ordinance of the Ministry of Commerce of November 
22, 1918. 

In the early days following the armistice the new 
State, like the rest of central Europe, was almost bare 
of foodstuffs, raw materials, and other commodities. 
By prohibition against exportation sufficient supplies 
of necessaries were to be assured to the people. Hence 


COMMERCIAL POLICY AND TARIFF 129 


the Commission would forbid the exportation of food- 
stuffs and raw materials, control the exportation of 
coal, and permit the exportation of other goods only 
in case the people were assured a sufficient supply at 
reasonable prices. The imports were likewise regu- 
lated; the Commission would, for example, seek to 
restrain the importation of oranges, wines, and other 
luxuries, as weil as of goods which were already ob- 
tainable in the domestic market. These measures 
were intended also to protect the currency. In addi- 
tion to the Import and Export Commission, a Central 
Exchange Bureau was established. The exporters were 
required to turn over to the Bureau all foreign ex- 
change obtained for goods sold abroad, and the Bu- 
reau would reassign such exchange for the purchase 
of foodstuffs and important raw materials or such 
other goods for which import permits could be obtained. 

The authority of the Import and Export Commis- 
sion was somewhat modified in the course of time. 
By an ordinance of February 26, 1919, some of its 
rights and duties were transferred to industrial syndi- 
cates. The intention was to permit the several branches 
of industry and trade to manage their own affairs. It 
seemed also that such associations would be in a better 
position than individual firms when purchasing raw 
materials abroad or selling domestic goods or supply- 
ing materials and machinery for the devastated regions, 
since in such cases the financing would be beyond the 
means of individual firms or corporations. It soon 
became evident, however, that if trade was to be thus 
controlled at all. an impartial Government bureau 
should be given preference over groups of interested 


130 CZECHOSLOVAKIA 


parties that might have to pass on applications of their 
competitors. Asa matter of fact, no large transactions 
were ever effected for the joint account of the syndi- 
cates. In a few cases, in addition to the syndicates 
which possessed official authority, special associations 
were organized, as, for example, for the purchase of 
cotton, of fats for the manufacture of soap, and for 
the importation of mineral oils. Such transactions, 
however, caused considerable difficulties to both in- 
dustry and the State later on, as the distribution and 
liquidation of the stocks so purchased had to be 
carried out at a time when the world prices had already 
fallen while the exchange value of the Czechoslovak 
crown had risen. The syndicates were consequently 
divested of their official authority, and the control of 
the foreign trade was reorganized and intrusted to a 
special Foreign Trade Bureau established under the 
law of June 24, 1920. The Bureau revised the sys- 
tem of permits, issued lists of goods which might be 
exported freely, adopted more liberal rules for the 
granting of import permits, and co-operated in the 
modification of the control of foreign exchange. 
Foreign trade continues under partial control, at 
the time of writing. The control is criticized by 
many as troublesome, but it has been demanded by 
producers in many cases and by consumers in others. 
It was found to be necessary particularly in 1919 and 
1920 when Czechoslovak exchange was falling, and 
it was necessary to protect the crown against further 
depreciation through payments for unprofitable im- 
ports and to prevent a precipitate selling out of the 
domestic stocks for the sake of the delusive profits to 


COMMERCIAL POLICY AND TARIFF = 131 


be made on exchange. The State made an attempt 
to obtain for the Treasury a part of the exchange 
profits by imposing export duties on hops, malt, lumber, 
spirits, etc. The proceeds were disappointing, how- 
ever. It has also been charged that State control of 
the sugar exports had made it impossible for the trade 
to take advantage of the high prices of sugar in the 
world market. 

If the control of imports is to be judged fairly 
the low rates of duties must be taken into consider- 
ation. In the system originally adopted in Czecho- 
slovakia low import duties were combined with the 
restriction of imports by permits. Domestic produc- 
tion was to be protected by prohibitions against im- 
portation. When importation was to be permitted for 
any special reason it would have been inconsistent, 
under the existing economic conditions, to place on 
the consumer an additional burden in the form of 
high import duties. 

That the system of trade control has been main- 
tained in Czechoslovakia so long has been largely due 
to the existence of similar conditions in the neigh- 
boring States. In Germany, under the so-called 
“Planwirtschaft,’ a complicated system of import and 
export control was elaborated which made similar 
measures necessary in Czechoslovakia also. Austria 
likewise made use of import and export prohibition. 
In Hungary a similar system of control has recently 
been reinforced by strict provisions relating to for- 
eign exchange. Switzerland also considers the regu- 
lation of imports as indispensable in certain lines. 
Rumania and Yugoslavia have passed through many 


132 CZECHOSLEOVARTA 


and varied phases of a similar system. The original 
causes leading to the adoption of the system have 
largely disappeared both in Czechoslovakia and in the 
neighboring countries, but the system has been of good 
service to Czechslovak industry, particularly so in 
times of sudden fluctuations of exchange (collapse of 
the German mark, for example) when odious anti- 
dumping laws might otherwise have been necessary. 
The question of trade control was considered by the 
delegates of the succession States at the Portorose 
conference toward the end of 1921, and the removal of 
trade restrictions was recommended under certain 
conditions which have not been fulfilled, however. 
The Czechoslovak Government showed its willingness 
to suppress that system when it abolished the inde- 
pendent Foreign Trade Bureau by the law of Jan- 
uary 19, 1922. The work of the Bureau, reduced to 
about one-fourth of its former extent, was transferred 
to a division of the Ministry of Commerce. 

This system of foreign trade control in Central 
European States explains why the earliest Czecho- 
slovak treaties with other States were “compensatiort’ 
treaties providing for the exchange of specified goods. 
By the treaty with Austria of March 12, 1919, Czecho- 
slovakia obtained freedom of transit to and from the 
port of Trieste, and the liquidation of various war 
supplies remaining in Vienna, such as metals, hides, 
textiles and demobilization materials, as well as sup- 
plies of certain industrial materials found in Austria 
in abundance, such as magnesite for the metal indus- 
try and tanning materials for the leather industry. In 
return, Czechoslovakia agreed to supply Austria with 


COMMERCIAL POLICY AND TARIFF 133 


coal and that at a time when, under the postwar dis- 
organization of mining, the Czechoslovak industries 
themselves were suffering from a shortage of coal. 
Austria was also to receive a large quantity of Czecho- 
slovak sugar at the price of 3.20 Cz. crowns per kilo- 
gram for household use and 5.40 Cz. crowns per kilo- 
gram for industrial uses, and the sugar was delivered 
at a time when the world price had risen to 20-30 Cz. 
crowns per kilogram. The treaties with Poland and 
Rumania secured to Czechoslovakia supplies of crude 
and refined mineral oils in return for metal wares, 
machinery, and other industrial products. The treaty 
with Yugoslavia was to secure to Czechoslovakia sup- 
plies of grain and cattle in return for sugar and in- 
dustrial products of various kinds. In the early times, 
however, trade with these countries suffered greatly 
from the difficulties of transportation; in 1920, for 
example, it was cheaper to bring grain and flour to 
Czechoslovakia from America than from these nearby 
States. 

The earliest Czechoslovak treaties with Germany 
provided for the delivery of Czechoslovak lignite to 
Germany in return for coal, and for the removal of 
certain import and export prohibitions by both parties. 
The general commercial treaty with Germany, signed 
June 29, 1920, at Prague, provides for the most- 
favored-nation treatment in matters of trade as well 
as in regard to the carrying on of industry or trade 
by the citizens of either State in the territory of the 
other. The treaty also modifies various import and 
export restrictions of both countries. 

The Czechoslovak import restrictions were further 


134 CZECHOSLOVAKIA 


relaxed by treaties with the western States, notedly 
with France and Italy. The treaty of November 25, 
1920, permitted the importation from France of 
large quantities of wine, silks, woolen fabrics, cloth- 
ing and millinery articles, rubber and leather goods, 
automobiles, toilet soaps, and perfumeries, and made 
free the importation of numerous articles of produce, 
raw materials, metal and chemical goods. In return, 
France would apply the rates of its minimum tariff 
to certain Czechoslovak goods or reduce the rates of 
the general tariff. The treaty with Italy, concluded 
March 23, 1921, authorized the importation of cer- 
tain quantities of automobiles, tires, rubber goods, 
soaps, silks, hats, wine, oranges, lemons, figs, and 
other products, from Italy. In return, Czechoslovakia 
obtained the most-favored-nation treatment in mat- 
ters of the tariff and a modification of certain import 
restrictions then in force in Italy. In all other re- 
spects the treaties with France and Italy as well as 
the treaty of April 23, 1921, with Rumania, the treaty 
of October 20, 1921, with Poland, and the treaty of 
October 7, 1922, with Latvia, follow the tenor and 
the methods of prewar treaties. The Czechoslovak 
treaty of November 19, 1921, with Spain resembles 
the treaties with France and Italy. 

Neither the commercial treaties mentioned above 
nor the negotiations carried on with the United King- 
dom, Belgium, the Netherlands, Denmark, Greece, 
Portugal, and Japan, contain any special provisions 
affecting the Czechoslovak tariff rates. The Czecho- 
slovak tariff thus remains an autonomous tariff. The 
most-favored-nation clause contained in all the treaties 


COMMERCIAL POLICY AND TARIFF = 135 


will, therefore, remain inoperative for some time as 
regards import duties. It is easy to see why negoti- 
ations in regard to rates have not been commenced.. 
Owing to the fluctuations of exchange, the tariff rates 
of the neighboring countries of Germany, Austria, 
Poland, and Hungary, whose trade relations with 
Czechoslovakia are very active, are even less stable 
than those of Czechoslovakia. In the treaties with 
France and Italy which, under other conditions, might 
have affected the tariff rates, the interest was centered 
in import permits. Other States, such as the Neth- 
erlands, Belgium, Denmark, or the United Kingdom, 
have no reasons to give up their tariff autonomy in 
treaties with other States and consequently are not 
concerned about tariff rates. 

The rates of the autonomous tariff of Czechoslo- 
vakia were revised several times in 1920 and 1921. 

By the ordinance of May 21, 1921, the system of 
exchange surtaxes, modelled on the French postwar 
tariff, was adopted. The rate of duty is established 
by multiplying the basic (nominal) rate with the proper 
coefficient. Varying coefficients were assigned to the 
several items of the tariff. Articles of luxury and 
articles specially protected were given co-efficients 10 
to 16. Semi-manufactured articles and goods with 
lower protection received the coefficient of 7. Where 
importation of goods was to be made easier, the co- 
efficients were I to 5. 

When Czechoslovak exchange began to improve 
toward the end of 1921 while the German mark was 
falling it became necessary to revise the tariff rates 
for the protection of Czechoslovak industry against the 


136 CZECHOSLOVAKIA 


competition of Germany and other neighboring States 
with depreciated currencies. The revision was carried 
out by the ordinance of December 18, 1921, going into 
effect January I, 1922. The coefficients for manu- 
factured goods averaged Io to 15, increasing to 20 to 
30 in a few cases of goods specially protected. In 
the first half of 1922 when the Czechoslovak crown was 
quoted in Zurich at about 10 centimes or nearly one- 
tenth of its prewar value, the protection of Czechoslo- 
vak industry was increased by the revision one-half or 
even doubled (in rare cases, trebled) as compared with 
prewar rates. 

A new upward movement of the Czechoslovak 
crown commencing in July, 1922, raised its value in 
Zurich to 18 centimes in October of 1922. By that 
time the German mark had fallen in value to 0.01 Cz. 
crown. The effect of those violent changes was two- 
fold. Czechoslovakia was enabled to purchase raw 
materials abroad at a lower cost, e. g., cotton, wool, 
copper, hides, rubber, as well as cereals, flour, cattle, 
and meats. On the other hand, the level of prices pre- 
vailing in Czechoslovakia until the summer of 1921 
was abnormally high, particularly in comparison with 
the prices in Germany and Austria. The consumers 
were clamoring for lower prices while the producers 
were still afraid of German competition during the 
period of transition. However, the upward course of 
the crown brought about an energetic movement for 
the lowering of prices in Czechoslovakia, and the move- 
ment was supported by the Government through the 
reduction of certain taxes (such as the taxes on coal 
and coke) which had contributed to increase the cost 


COMMERCIAL POLICY AND TARIFF = 137 


of production. In new negotiations between the manu- 
facturers and organized labor wages were reduced 20 
to 30 per cent; the new wage agreement concluded with 
the coal miners in October of 1922 particularly was 
expected to produce far reaching results. The prices 
were likewise to be lowered by a reduction of tariff 
rates announced by the Government in a proclamation 
issued September 9, 1922. The new revision of tariff 
co-efficients prepared in agreement with the Chambers 
of Commerce and Industry will reduce the import 
duties in many cases by as much as one-fourth. Czecho- 
slovakia, it would seem, will thus be the first State to 
adopt, in its tariff policy, a course that is a direct 
opposite of the course followed in recent years by 
nearly all the countries of the world. 

In the tariff policy of Czechoslovakia there still re- 
mains one problem which demands solution. As a re- 
sult of the war and the difficulties of obtaining supplies 
after the armistice the import duties on grain and 
flour have been suspended and the duties on cattle, 
meats and fats reduced to a minimum. Czechoslovakia, 
however, has a large and progressive agricultural pop- 
ulation which now demands protection for its produce 
as a matter of natural right. It is easy to understand 
the clamor for grain duties at a time when the world 
prices of grain have declined so markedly between 
April and October of 1922 while the purchasing power 
of the crown abroad has nearly doubled. The solu- 
tion of this problem has been deferred until the next 
session of Parliament when the new autonomous tariff 
is to be considered. 


XxX 


RAILWAYS 


Dr. VActAv Burcer, LATE MINISTER OF RAILWAYS 


In Czechoslovakia the railways are owned partly by 
the State and partly by private corporations, and are 
operated, for the most part, by the State. The length 
of the lines open for traffic at the end of Ig21 is 
shown in the following table (in kilometers) : 


Operated by Operated by 
State foreign States 
: ? Ne => ob xian) 2 E 
Equipped with Bey 83 20 ly ee bp oS 
Hh v oO Hoo © oO ano) Oe = 
fs FE Bt Nel 4B e Se a aban 
<5 ont 
Bea Bs OS Ue GOs best ol aber Cameras 
Steam locomotives 7,792 3,826 1,150 41 5 O07 12,013 
Electric locomotives... 51 98 A 150 


The State railways are directed by the Ministry of 
Railways and managed by seven district bureaus of 
the State Railway Adminstration. The Ministry of 
Railways is invested with absolute power to direct all 
railway traffic and to control the adminstration of the 
State railways as well as of the private lines. The 
Ministry is divided into 7 sections: (1) Minister’s 
Office, (2) Judicial and Administrative, (3) Financial, 
(4) Commercial, (5) Construction, (6) Machinery and 
Shops, (7) Traffic. The district bureaus are located 
in Prague, Plzen, Hradec Kralové, Brno, Olomouc, 
Bratislava and Kosice. Under the direction of the 

138 


RAILWAYS 130 


Ministry of Railways and in accordance with its plans 
and rules, these bureaus have charge of the local admin- 
istration of all railway lines within their territories. 
They are responsible for the security, order and regu- 
larity of traffic. At the head of each bureau is a 
director with one or two assistant directors. 

The mileage of the railways in the several districts 
is shown below: 


District bureau: Length of line 
IPraguGuvy ess 1s tc.0c8s 1,895 km. or 1,178 miles 
PISO ets ie ae sale wee  2,027-km.. or 1,260 miles 
Piradecantal cess. 2,014 km. or 1,251 miles 
BENOie ee aes caine es 1,256 km. or 781 miles 
IGMHOUNCH. een nears wet 1,741 km. or 1,081 miles 
BEATISIAVA Ey sishe wires 2,147 km. or 1,334 miles 
KROMCES a vie ae roe ce 1,614 km. or 1,003 miles 


(including Kosice-Bohumin line.) 


The total length of State and private lines operated 
by the State is 12,694 km, out of which 953 km are 
double-tracked. 

Railway stations operating local traffic directly, and 
the construction and other services, are under the juris- 
diction of the district bureaus. The following table 
shows the number of these offices: 








s ed On 
Ube se Eto arte wis 
Ss Eo vaery & 3 a6 < a 2 
vom.) a3 =o E a o 3 ss i o 
59 so 8 Sy daft i I 2 
= 3 es so 32 £3 = ~ * 
AS COB ee as = ai = 
P&ague ica es 4 17 II 384 3 I 3 
AZO soso. pene 5 14 ¢ 333 4 I I 
Hradec Kral.. 3 20 9 387 3 2 2 
BER AIC s Gace iets a 12 7 322 I I I 
UOMOUC -.6. 05 s 17 5 228 3 I 3 
Bratislava: <0. 17 2 304 I I 2 
BROSTICE os ss . 6 2 8I I I I 
tal cot. 14 103 46 2,040 16 8 13 


140 CZECHOSLOVAKIA 


The chief private railways in the Czechoslovak Re- 
public are: 


1. The Usti-Teplice Railway......... 253 km. or 157 miles 
2. The, Bustehrad; Railway... e.v... ss 422 km. or 263 miles 
3. Local ratlwaysey cree ee ne 203 km. or 182 miles 


Total private railways (with the excep- 

tion of the KoSice-Bohumin line)... 968 km. or 602 miles 
Lines. with? double; tracks.) 2 sian. 441 km. or 274 miles 

The Kosice-Bohumin Railway and most of the local 
railways are under the State Administration. 

The Czechoslovak Railways are, with some excep- 
tions, steam railways of a normal gauge of 1,435 mm. 
The characteristic standards of line construction as to 
weight of rail, grades, and curves are as follows: 


Smallest Weight 

radius Steepest of rail 

of curve grade kg. per 

Railway line: (meters) (1:1000) 1 meter 
Cheb-Plzen-Praha-C. Tfebova-Olomouc- 

Bohumin-Zilina-Kosice 1. bass a kes ak 300 II 35.6 
Podmokly-Praha-C. Budéjovice-H. 

DVOPIStEAUL aie canine Li tone 300 II 35.6 
C. Tfebova-Brno-Bfeclava-Bratislava .. 230 7.9 35.6 
Bratisiava-Zilinawe, eu ees ee ee oe 300 7.5 42.8 
Brateslava-Parkane Nana ood sae ew 600 4 42.8 
Pizen-Brodhnnlas tack Otek eien Cee te 350 10 35.6 
Fizen-Duchtov7 ce ane ecto 250 13 35.6 
Plizen--C. Budéjovice-Cmunt ........... 300 II Ras 
Praha- Most hoi suas ance pee eens 250 16.7 35.6 
Leplce-LOdMOK bah, BE iic ads eee es 200 20 35.6 
I OUunY-ZLGice-ELotivitt)) ut ugheaisetiitee. 250 15.5 35.6 
Praha-Hradec Kraal.-Mezilesi ......... 250 15.5 25.6 
Praha-Vsetaty-Rumburk))e.... eae: 280 17 35.6 
SatOveDecin: qeteer tat aie nae eee lee 250 IO 35.6 
ChocefisMeZIMOStt i: cy veeusis ciate os 284 14.3 35.6 
DINO ELOLO Ve ate ee teehee eee ae 400 6.7 35.6 
WlomoticeOpavar.:.7. cies decane wees 225 17 35.6 
Brno-V lary ‘Pass-Lepla/ ae ieccus eae 250 16 33 
Bratislavas Comatose ae ee 250 5 23.6 
Otherv nes povsra dt aie dass aoe nese 180 25 35.6 


RAILWAYS I4I 


The table shows that the Czechoslovak lines are not 
of a uniform type. This is explained by the origin 
of the system which has been formed gradually by the 
acquisition of various private lines. The Czechoslovak 
administration plans in time to strengthen the perma- 
nent way and the bridges to such a degree as to increase 
the maximum admissible wheel load of locomotives, 
which is at present only 14.5 tons, to 20 tons for the 
trunk lines and to 16 tons for the secondary lines. It 
plans to increase the maximum. speed of trains which 
now varies between 80 and 90 km, and on the Slovak 
lines only 60 or 70 km per hour, to 120 km per 
hour. About 5,000 km of rails will have to be rein- 
forced, and at least 310 km of rails will have to be 
renewed annually in order to increase the speed of 
trains on lines of international traffic to 100-120 km. 


THE CONDITION OF THE LINES AFTER THE WAR. | 


The railways of Czechoslovakia—with the exception 
of some lines in the eastern part of Slovakia and 
Carpathian Russia—were not damaged by military 
operations during the war; it was only the invasion of 
the Magyar bolshevik troops into Slovak territory in 
the year 1919 that caused considerable damage. The 
railways suffered, however, during the war by the 
insufficient maintenance of the lines when all sections 
of the railway system were unusually overtaxed. Under 
the Austrian and Hungarian administration little at- 
tention was paid to the needs of the Czechoslovak 
territories, and nothing was done to improve the 
means of communication between Slovakia in the east 
and Bohemia in the west. After the Revolution it be- 
came necessary to equip the lines for the traffic from 


142 CZECHOSLOVAKIA 


east to west along the long axis of the Republic. As 
there were comparatively few railways running in that 
direction and, moreover, those were of weak construc- 
tion, it was necessary to reinforce and supplement the - 
existing lines. 

In order to secure the communication between 
Prague, the capital, and Bratislava, the most important 
river port of the Czechoslovak Republic on the Danube, 
the Breclava-Bratislava line had to be strengthened and 
double-tracked. The second tracks of the lines Ceska 
Trebova-Olomouc, Prague-Plzen, as well as the second 
tracks of other lines in Bohemia are being constructed 
to a total length of 112 km. 

By the readjustment of frontiers, particularly in 
Slovakia, some lines have been cut off from the railway 
system. By the construction of the connecting line 
near Banrieve the separated lines in the district of 
emer have again been connected with the system. The 
connection with the Ruthenian territory has been im- 
proved by the construction of the Banovce-Vajany line 
(19 km), finished in October 1920. 

On the Czecho-Austrian and Czecho-Hungarian fron- 
tiers there are more than 30 transit stations fitted out 
very inadequately. These stations are to be fitted out 
gradually for their new duties. By various provisional 
constructions the first difficulty has been to a great 
extent overcome and the definite construction of those 
stations is now in progress. 

Beside the above-mentioned urgent works it was 
also necessary to prepare a program of systematic 
improvement and extension of the railway system. 
By the law or March 30, 1920, the National Assembly 


RAILWAYS 143 


adopted a progam for several years and provided 6% 
billion crowns for railway construction. 

Under this program a direct communication between 
the eastern and the western parts of the Republic will 
be accomplished by a new line running from Veseli 
on the Morava River through the center of Slovakia to 
Kosice-Uzhorod-Mukac-Hust. The Czechoslovak rail- 
way system will be adapted to the new traffic require- 
ments and will be equipped in such a way as to meet 
the needs of the expected economic development of 
the country in the future. The program contemplates 
the construction of 15 new lines of a total length of 
568 km, including 389 km of line in Slovakia and 115 
km of connecting lines between Slovakia and the 
other provinces of the Republic. 

In addition, second tracks will be laid on many other 
lines, and after the completion of this program 16 per 
cent of the lines in the Republic will be double-tracked. 
All stations of any importance will be properly recon- 
structed and fitted out for intensive traffic. At impor- 
tant centers of traffic, especially at Prague, Ces, Tre- 
bova, Brno, Plzen, Ces. Budéjovice, Hradec Kralové, 
Breclava, Bratislava and Kosice adequate switching 
yards and sorting depots will be constructed. The 
preparatory work has so far advanced that it will be 
possible to begin the construction of all lines in a very 
short time. For the management of these new con- 
structions three technical departments have been estab- 
lished, at Myjava, Handlova, and Zvolen. 

A special department studies the problem of the re- 
construction of the Prague railway stations. The prin- 
cipal problems are: the separation of the passenger from 


144 CZECHOSLOVAKIA 


the freight traffic, the separation of the freight traffic 
from the service of making up trains, and of the local 
from the through traffic. 

In Prague the Wilson Station will be used for the 
passenger through traffic, and the Masaryk Station for 
the local traffic. A new switching yard is planned for 
the making up of passenger trains in both central sta- 
tions, and a new central freight depot for the freight 
service. All suburban stations of Prague which are to 
be adapted for the metropolitan traffic by separating the 
passenger from the freight traffic will be connected with 
the switching yards by lines serving the local freight 
traffic. 

To prevent intersection of the through freight traffic 
with the local freight traffic and to divert the through 
freight traffic form the center of Prague new local con- 
nections will be established. The through freights will 
encircle Prague over the new belt railway lines. The 
general projects elaborated on those principles by the 
research department mentioned above are now being 
considered by a commission on which all the interested 
parties are represented. In studying these problems due 
note is taken of the projected electrification of all rail- 
way lines in the environs of Prague within a radius of 
about 50 km. This problem is to be solved in connec- 
tion with the electrification of the country which will 
be accomplished partly by the development of water 
power and partly by the use of coal. 

The construction of local lines to supplement the rail- 
way lines has been decreed by the law of June 27, 19109, 
in force January I, 1922. Under this law investiga- 


RAILWAYS 145 


tions have been made in 130 cases regarding lines of a 
total length of about 3,000 km, and a program for the 
construction of local railways in the Czechoslovak Re- 
public will be worked out on the basis of these re- 
searches. 


CARS 


Under article 318 of the Peace Treaty of St. Germain 
the rolling stock of the Austrian railways was to be dis- 
tributed by the Reparation Commission in Vienna 
under the presidency of Sir Francis Dent. This Com- 
mission has not yet finished. its work. 

The number of cars in the territory of the Czecho- 
slovak Republic is much less than the number which 
would belong to the Czechslovak Republic occording to 
the conditions of traffic during the war. After the 
Revolution, the rolling stock of Czechoslovakia was 
short more than 1,890 locomotives and more than 
65,000 cars. Since that time the Administration of the 
State railways has enlarged its rolling stock by the 
construction of new locomotives and cars, and has for 
this purpose placed considerable orders both with 
domestic and foreign manufacturers. 

Czechoslovakia obtained 92 locomotives out of the 
number delivered to the United States of America by 
Germany, in accordance with the conditions of the 
armistice. More than 200 locomotives have been de- 
livered by domestic and foreign manufacturers, and 
more than 300 have ultimately been acquired in the 
distribution under the Peace Treaty, or from other 
sources. 


146 CZECHOSLOVAKIA 


The number of locomotives on the main lines in 
Czechoslovakia is shown in the following table: 


Express and 
passenger Freight 


train train Smaller 
locomotives locomotives locomotives Total 
Czechoslovak State railways 939 1,918 770 3,627 
KoSice-Bohumin railway ... 40 176 7 273 
Bustehrad ‘railway! 0)... 3s 60 154 23 237 
Usti-Teplice railway ....... 25 113 5 143 


The number of locomotives is insufficient for the 
present demands of traffic, and the needs of traffic 
will greatly increase with the economic development 
of the country. Czechoslovakia expects a consider- 
able share from the division of the rolling stock 
of former Austria-Hungary, but in the meantime, 
continues to enlarge its own stock of locomotives by 
other means. 

The number of cars in Czechoslovakia according to 
the census of September 12, 1920, was as follows: 


oe 
as} a 
5) 3 n % 3 3 
HEUER Ch Marah: faint iichaan y 
> pepe Dae 5 “a S 
SV ae ee ioe Barareh Wh vB ie £ 
fu oO ne Ws Oo ie) Ho Oo 
Cars of former Austrian 
railways (St. B.).... 5,407 1,591 5,575 20,689 7,703 33,967 40,965 
Cars of former Hungarian 
railways (M.A.V.)... 708 214, 1,926 8,201 1,147 11,374 12,286 


Czechoslovak cars (CSD) 1,077 325 8,834 10,822 796 20,452 21,854 
Cars of private Czecho- 








slovak railways ...... KE: 260 1,348 15,325 1,422 18,095 19,087 
Foreign’: cars @..03.eeess 165 S32, 140./4.'9,282 464 11,885 12,058 
‘Latal ¥ivacaaaies cme os 8,089 2,398 19,823 64,408 11,532 95,763 106,250 


Since that census the number of the cars of the 
Czechoslovak State railways, constructed in domestic 
factories and marked C. S. D., has increased to 30,000. 


RAILWAYS 147 


THE MAINTENANCE OF ROLLING STOCK 


After the great war the proportion of locomotives 
under repair was unusually large (40 per cent against 
18 per cent in prewar time). However, with the aid of 
private industry, and especially by intensive work and 
the enlargement of our own railway shops, it was possi- 
ble by the 1st of July, 1921, to reduce the proportion of 
locomotives under repair to less than 20 per cent. 

The maintenance of cars has also improved con- 
siderably. At the beginning of 1919 the proportion of 
passenger cars under repair was 33 per cent, and of 
freight cars, 14 per cent. At the end of 1920 this 
percentage decreased to 14.4 for the passenger cars and 
7.8 for the freight cars. 

In the ten main shops with 10,000 workmen and the 
16 locomotive shops with 4,300 workmen, there were 
repaired : 


In the first 
In 1920 half of 1921 


a. Locomotives: 




















PRCA VVRTEDAIUS Weta aie nts eta acd ceeets 645 *352 
WWitestibaata Cars bec ey Gowns ge deen me RY 4 1,797 923 
PASHEPL ED AILS beech aaieie ta bie eh vein tao atl tate 18,673 10,765 
Total locomotives repaired............ 21,115 12,040 
b. Passenger, service and postal cars: 
HeAVVPrepaits iirc i fee ath elahale & tiayetets 3,305 3,014 
Meditittetepairs tosis us ota, eileen 5,370 4,955 
LAGHTATePAIT Sree wee alec sack aches tee 48,949 27,292 
Total passenger, etc., cars repaired..... 57,024 36,261 
c. Freight cars: 
Heavverepairgae ee ic ierits oe aes 15,164 II,097 
Medtunis repairs er nc ee eae eee ae a 19,915 24,224 
Light repainae sae cece Ve sete cues 288,895 131,013 
Total freight cars repaired............ 323,874 166,334 


*Incl. Kos-Boh. railway. 


148 CZECHOSLOVAKIA 


These figures show that the efficiency of the repair 
shops has improved. Nevertheless, the present capacity 
of the shops is not adequate for the number of cars 
which the Czechoslovak State railways will place in 
service in the near future. It will, therefore, be neces- 
sary to build three new main shops for the repairing of 
cars and to equip the locomotive shops for all light 
and medium repairs. 

The enlargement of thé shops was already provided 
for in the construction and investment program under 
the law of March 30, 1920. By the intensive work done 
in the railway shops of the Czechoslovak Republic the 
rolling stock of the former Austrian and Hungarian 
State railways was kept in condition for service, and 
railway traffic in central Europe was saved from dis- 
organization and a possible collapse. 


PASSENGER TRAFFIC 

After the war is was necessary to adapt the pas- 
senger and the freight traffic to the requirements of 
the liberated country. By the time-table of June 1920 
the internal traffic was essentially improved, especially 
the connection with Slovakia, and in July I921 a 
new time-table was introduced closely approaching 
the normal conditions and meeting the most important 
needs of the population. The international passenger 
traffic was also greatly improved. Prague has a direct 
connection with Paris via South Germany, with Milan 
and Rome through Munich, with Belgrade and Trieste 
through Maribor, with Bucharest through Kosice and 
Kiralyhaza, and with Breslau through Kladsko. 

The direct communication Berlin-Vienna gover 


RAILWAYS 149 


Décin-Prague necessitates as yet a change of cars at 
Décin, but this difficulty will soon be removed. The 
passenger traffic carried at present by the Czechoslovak 
State railways per 1 km. of line is 104 per cent 
greater than before the war. The intensity of the 
passenger traffic in comparison with the Austrian pre- 
war conditions is indicated in the following table: 





y 7 
=] uO 
3S 6 2 be 53 Get 
SEE Sf go ee 
“3 8 at os ase ge. 
° eos wy OM a 
oes Se ae eos ge 
Zi be as as eh As 
Austrian State railways in 
TOL Sis ciate eveieruee tik etae 153,518,550 10,968 5,804,066,266 37.81 14,029 
Czechoslovak State rail- 
WAYS JIE UI O10 sts saa «e's 126,463,304 16,731 5,231,868,163 41.37 7,558 
Czechoslovak State rail- ; , 
WAY Sarit 1020 sce melee ss 174,107,907 22,424 6,869,805,389 39.46 7,892 


FREIGHT TRAFFIC 


The development of the freight traffic has suffered 
from a shortage of cars. Therefore the greatest pos- 
sible care has been given to the organization of through 
traffic in order to utilize the cars to the utmost. And 
we have really succeeded in speeding up considerably 
the circulation of cars (time reduced from 13 to 10 
days) and thus at least to some degree satisfied the 
needs of commerce and industry. Thus, for example, 
in 1920 from January to November 105,000 more cars 
were loaded and transported than in the same period in 
1919. In spite of this, the movement of freight is far 
short of the prewar intensity as will be seen from a 
comparison of the conditions in 1919 with those of 
1913, in the following table: 


150 CZECHOSLOVAKIA 


(in metric tons) 


Fast freight Parcels Carload lots Total 
Austrian state rail- 
ways in’ 1913... 1,140,788 55554,010 79,131,586 85,826,964 
Czechoslovak State 
railways in 1919 326,666 1,643,235 31,582,293 333575194 
Czechoslovak State 
tailways in 1920 351,449 1,767,886 38,128,098 40,248,033 


(in ton kilometers) 
Austrian State rail- 
ways in I9I3. 148,095,884 809,356,040 11,352,112,402 12,309,564,326 
Czechoslovak State 
railways in 1919 34,765,741 156,552,272  3,272,795,673  3,464,113,086 
Czechoslovak State 
railways in 1920 40,062,484 216,561,724  3,941,392,711  4,198,016,919 
(in metric tons) 


Per1km. Administration Per 1 km. 
of the line shipments Grand total of the line 
Austrian State rail- 
ways in 1913); 's 6,118 7,452,801 93,279,765 6,649 
Czechoslovak State 
railways in Igi9g. 4,177 3,877,004 371234,198 4,660 
Czechoslovak State 
railways in 1920 5,101 4,603,484 44,851,517 5,686 


; ’ (in ton kilometers) 
Austrian State rail- 


ways in I1913.... 870,030 1,228,108,352 13,537,072,678 957,712 
Czechoslovak State 

railways in 1919. 451,031 545,416,690 4,009,530,376 522,044 
Czechoslovak State 

railways in 1920. 532,100 659,223,143 4,857,240,062 615,657 


Czechoslovakia is the second country in Europe in 
sugar production (Germany 2.7, Czechoslovakia 1.9, 
France 0.9, Netherlands 0.3, Belgium 0.3 millions of 
tons yearly). Consequently the sugar campaign from 
the end of September to November is a very difficult 
period for the Czechoslovak railways, the more so, as 
it is necessary at the same time to supply the cities 
with foodstuffs and the industries with coal for winter. 

The following table shows the intensity of the traffic 
resulting from the movement of the sugar crop: 


No. of tons carried No. of cars used 

1919 1920 I9I9Q 1920 
Héets wire y ce cee ta 1,544,421 1,750,462 127,082 125,282 
Beets pulp ie en et 871,676 1,087,885 67,661 77,928 
Raw sitcareienaet ss 189,699 246,601 14,551 17,450 








Totalie. see laa 'etba 022,005,000) 0 2: 060hOAs 209,204 220,660 


RAILWAYS 151 


The carrying capacity of the cars was increased from 
12 to 13.9 tons and the sugar industry supplied 1,000 
of its own cars of 20 tons. Owing to a better traffic 
organization the movement of the sugar crop, which 
had been attended with some difficulties in 1919, had 
an entirely normal course in 1920. 


TARIFFS 


In the first period after the revolution, in order to 
avoid violent economic disturbances, it was necessary 
to keep in force the rules and tariffs of the Austrian 
and Hungarian State railways, modifying them only 
with regard to the new situation. A revision of these 
tariffs is now being considered. 

For international traffic there was at first no legal 
basis ; Czechoslovakia, a new State, was not a member 
of the Berne Convention for the international railway 
traffic, and the Czechoslovak Republic had declared 
that it was not a member of the Union of the German 
railways. Consequently, it was necessary to conclude 
preliminary tariff agreements with the railway admin- 
istrations of the neighboring countries. The agree- 
ments were based on the Berne Convention, with 
some exceptions as required by the situation created 
after the war. In 1921 the Czechoslovak Republic 
formally joined the Berne Convention in the sense of 
the peace treaty. On the 1oth of March, 1919, the 
monetary union of the former Austro-Hungarian ter- 
ritories came to anend. For this reason all the joint 
tariffs had to be abolished, and temporary agreements 
had to be negotiated with the neighboring railway 
administrations of the adjoining countries in order to 


152 CZECHOSLOVAKIA 


make possible direct shipments on a single bill of 
lading. 

Tariff agreements for the transportation of passen- 
gers and goods have been concluded with the follow- 
ing countries: France, Belgium, England, Germany, 
Netherlands, Italy, Austria, Yugoslavia, Poland, Ru- 
mania, and Hungary. 

Unsettled political, economic and currency condi- 
tions still make necessary certain special measures 
concerning import duties and passports at some transit 
points on the frontier. The situation in this regard is 
improving, and the respective administrations take care 
that the inspection is made as quickly as possible with- 
out trouble for the travelling public. The transpor- 
tation of goods is regulated by the agreements with 
Germany, Belgium, Netherlands, Luxemburg, Den- 
mark, Norway, Poland, Rumania, Yugoslavia, Italy 
and France. 

The international relations will be further consoli- 
dated by commercial agreements. Commercial treaties 
have already been concluded with several countries. 
The Czechoslovak railway administration seeks to 
make arrangements with the foreign administrations 
for a direct dispatch of goods. 

Through tariffs have been agreed on for the traffic 
with Trieste, negotiations for direct tariffs with the 
ports of the North Sea and the Baltic are in progress. 
By means of advantageous tariffs the railway admin- 
istration of Czechoslovakia seeks to promote naviga- 
tion on the waterways of the Elbe, the Vitava, and 
the Danube. 

In the inland traffic, as we mentioned at the begin- 


RAILWAYS 153 


ning, after the Revolution the Austrian tariffs were 
applied in Bohemia, Moravia and Silesia, the Hun- 
garian tariffs in Slovakia and Carpathian Ruthenia. 
On account of the deficit of the Czechoslovak rail- 
ways, the rates were twice raised in order to achieve 
at least a partial balance between the value of the 
goods carried and the rates charged. 

With regard to the elongated geographical form 
of the Czechoslovak Republic, it was very important 
to connect the eastern provinces, Slovakia and Car- 
pathian Ruthenia, with the Bohemian countries. Spe- 
cial efforts were made to provide direct railway con- 
nections with advantageous tariffs and rates for the 
traffic between the western and the eastern parts of the 
Republic. Accordingly the rates of the new passenger 
tariffs are based on a sliding scale, declining in pro- 
portion to the increase of the distance. The rates of 
the private railway line of Kosice-Bohumin are calcu- 
lated in a similar way. 

For social reasons, the advantages of reduced fares 
heretofore granted to manual workers for the journey 
from their homes to their working places has been 
extended to the intellectual workers also. For a dis- 
tance of 150 km. all workers are now entitled to a 
reduction of 74 to 80 per cent from the regular fare. 

A new method of calculation has likewise been in- 
troduced in the new tariff for the local transportation 
of goods on the basis of the total distance between 
the stations of the Czechoslovak State railways in 
Bohemia, Moravia, Silesia and Hlucinsko on the one 
hand and the stations of the Czechoslovak State rail- 
ways in western and central Slovakia south of Vrutky 


154 CZECHOSLOVAKIA 


and Zilina on the other; the same with regard to all 
local railways operated by the State in Bohemia, Mo- 
ravia and Silesia. In Slovakia and Carpathian 
Ruthenia tariffs already in force in Bohemia, Moravia 
and Silesia have been introduced so that now the same 
rates are appled in all Czechoslovak territories. 


FINANCIAL SITUATION 


The figures quoted above show the precarious con- 
dition of the Czechoslovak railways at the time when 
they were taken over by the new administration, and 
indicate the efforts necessary to maintain and improve 
the operation of the railways under the disastrous 
conditions existing after the war. These conditions 
naturally reacted on the financial situation of the 
Czechoslovak railways. 

The financial depreciation of the former Austrian 
railways during the war was clearly shown in the 
fact that the interest earned on the capital invested, 
which before the war had been 3 per cent, declined 
to 0.87 per cent for the fiscal year 1914-15, and to 
0.17 per cent for 1916-17. In 1917-18 there was a 
deficit of 110 million crowns, the charges for military 
transports being calculated as receipts although never 
paid. 

Thus the Czechoslovak Republic inherited a network 
of railways which was a liability rather than an asset. 

On the other hand it was necessary immediately to 
undertake expensive constructions and investments, if 
operation was to be maintained and by degrees raised 
to a decent level. It was likewise indispensable to in- 
crease the income of the personnel exhausted by the 


RAILWAYS 155 


war and living under wretched conditions. The 
Czechoslovak State railway budget is consequently 
burdened with heavy expenditures which are a direct 
result of the war, i. e., investments made necessary by 
the reckless exploitation of the system of railways dur- 
ing the war, and the increase of the income of the 
employees. 

When the extraordinary wear and tear caused by 
the war has been repaired, and the Czechoslovak rail- 
way system adapted to the new economic needs, the 
financial situation of the Czechoslovak State railways 
may be expected to improve considerably. 


XI 
THE POSTAL SERVICE 


(By THE CZECHOSLOVAK MINISTRY OF Posts AND TELEGRAPHS) 


Immediately after the proclamation of the independ- 
ence of Czechoslovakia, the administration of the 
posts, telegraphs and telephones took steps to organize 
the service in accordance with the new conditions. This 
task was not an easy one, for it meant the reorganiza- 
tion of the old system and the establishment of a new 
central administration which would have jurisdiction 
over all the postal, telephone and telegraph communi- 
cations. 

By the law of November 13, 1918, a Ministry of 
Posts and Telegraphs was established. The Ministry 
has direct control over six district bureaus of posts 
and telegraphs—in Prague, Pardubice, Brno, Opava, 
Bratislava and KoSice. The Kosice bureau is in 
charge of the branch office in Beregsas. The district 
bureaus have supervision over the postal and tele- 
graph offices, building offices and of postal bus trans- 
portation. The postal checking bureau is under the 
direct supervision of the Ministry. 

Immediately after its establishment, the Ministry 
had control over the postal districts of Prague and 

156 


THE POSTAL SERVICE 157 


Brno only; in Silesia and Slovakia the unsettled 
political situation made it impossible for the Ministry 
to take over the postal administration immediately. 
After the situation became more settled the Ministry 
took over the district bureau of posts and telegraphs 
in Opava (Silesia) and in January 1919 the postal 
and telegraph offices in Slovakia. 

In April 1919 a postal and telegraph district bu- 
reau was established in Pardubice. The invasion of 
Slovakia by the Magyar bolsheviks in May 1919 
considerably hampered and delayed the reorganization 
of postal service in Slovakia. However, when the 
conditions in Slovakia settled down in July 1919, the 
Ministry established a postal and telegraph district 
bureau in Bratislava, later also in Kosice. In Decem- 
ber 1919 a district bureau for the region of Ruthenia 
was opened in Uzhorod. This Uzhorod bureau has 
been closed, and a branch bureau opened in Bergsas. 

When the question of Teschen was settled in 1920 
the postal service was organized in that part of Silesia 
also. From the Prussian postal administration the 
Czechoslovak administration has taken over the post 
offices in Hlucinsko, and from Austria the offices in 
the regions of Valcice and Vitoraz. 

After the war, the postal authorities had to take 
energetic measures to avert the threatened disorgani- 
zation of the postal service, because of the sudden 
interruption of the old organization of the postal 
service, the lack of material, and the shortage of 
trained employees. The first problem was to regain 
for the postal service the confidence of the public 
which had been largely lost during the war (since 


158 CZECHOSLOVAKIA 


1920 the losses of mails have decreased from 0.44 per 
cent to 0.08 per cent and are still decreasing). It was 
necessary to improve the organization and extend the 
service in all directions. For this purpose transporta- 
tion of mail by aeroplane was established and the 
automobile transportation was extended. 

In Austria-Hungary, the transportation of mail by 
aeroplane was almost unknown. In the summer of 
1920, the Czechoslovakak Postal Administration con- 
cluded an agreement with the French-Rumanian Aerial 
Transportation Company, and the aerial transporta- 
tion of mail between Prague, Strasburg and Paris 
was inaugurated in October, 1920. In January of 
1921, the aerial route was extended to Warsaw, and 
at present a route is in operation also between Vienna 
and Prague with a connection for Budapest. Later 
on the service is to be extended to Belgrade and 
Bucharest. Czechoslovakia is also negotiating with 
Switzerland in regard to the establishment of an aerial 
route between Prague, Munich, Zurich and Geneva, 
with an extension to Lyons and to Spain. Plans for 
an aerial mail, to be carried by dirigible airships (di- 
rect connection between Prague and North America, 
South Africa, the Indies, Australia, and Japan) are 
under consideration. 

The French-Rumanian Aerial Company also trans- 
ports passengers and goods. 

Before the war Austria had 42 State automobile 
routes in service, of a total length of 1,586.56 kilo- 
meters; twenty lines with a total length of 470.06 
kilometers were in the present territory of Czecho- 
slovakia. During the comparativly short time of five 


THE POSTAL SERVICE 159 


years, and notwithstanding the unfavorable- condi- 
tions existing after the war, the Czechoslovak Postal 
Administration inaugurated regular automobile 
transportation of mails and passengers on 98 lines of a 
total length of 2,102 kilometers. For transportation 
170 autobuses are used, and for the carrying of let- 
ters and parcels 23 light automobiles and 48 trucks 
are employed. The postal automobile service is ad- 
ministered by 53 offices; the average number of pas- 
sengers carried during six months is 1,253,846; the 
number of packages and personal effects is 53,445; 
the number of kilometers traveled daily is 6,825. 

It was naturally in the interest of the state as well 
as in the interest of commerce and industry that an 
extensive system of dependable telegraph lines should 
be built in which Prague would assume a leading posi- 
tion due to its geographical situation. Notwithstand- 
ing the lack of material and shortage of skilled work- 
men, the telegraphic communications within the coun- 
try have been greatly improved. Thus, for instance, 
there was formerly only one line between Prague and 
Bruo, while now there are three direct lines. Other 
industrial and commercial centers like Prerov and 
Moravska Ostrava are now connected with Prague by 
direct lines, and Prerov also has direct communication 
with Bratislava and Zilina. 

Besides the building of new lines, steps were taken 
toward the improvement of the service by the instal- 
lation of modern appliances, such as the Hughes, Bau- 
det and Siemens apparatus. 

For the telegraphic communication with foreign 
countries, the postal administration has established and 


160 CZECHOSLOVAKIA 


maintains service over direct telegraph lines with 
France, Prague-Paris: with England, Prague-London ; 
with Poland, Prague-Warsaw; Prerov-Cracow, Mor- 
avska Ostravea-Bilsko, Zilina-Cracow, Kosice-Lvov ; 
with Rumania, Prague-Bucharest, Kosice-Bucharest, 
Kosice-Cluj, Kosice-Oradeamare; with Yugoslavia, 
Prague-Belgrade, Prague-Zagreb; with Italy, Prague- 
Trieste; with Hungary, Prague-Budapest, Brno-Buda- 
pest, Kosice-Miskolcz; with Austria, Prague-Vienna, 
Ceské Budéjovice-Vienna, Brno-Vienna, Prerov- 
Vienna, Bratislava-Vienna, Moravska Ostrava-Vienna, 
Znojmo-Vienna, Breclava-Vienna, Plzen-Vienna, Kar- 
lovy Vary-Vienna, Prague-Linz, Ceské Budéjovice- 
Linz; with Germany, Prague-Berlin, Prague-Dresden, 
Prague-Leipsig, Prague-Hamburg, Prague-Munich, 
Karlovy Vary-Berlin, Plzen-Leipzig, Usti nad Labem- 
Dresden, Liberec-Dresden, Brno-Berlin, Prague- 
Nuremberg, Karlovy Vary-Hof, Podmokli-Dresden, 
Liberec-Svitau, Liberec-Goerlitz, Bratislava-Berlin; 
and with Switzerland, Prague-Zurich. 

The postal administration intends to build powerful 
radio-telegraphic stations in several large cities, so as 
to maintain communication with foreign countries in 
the case of damage to the telegraphic lines. The first 
broadcasting stations were built in Prague (Kral. 
Vinohrady) and in Brno. Both these stations have 
been in use since January I, 1922. The most powerful 
station is to be that of Podébrady, with a wave length 
of about 4,000 meters (the Kosice and Bratislava 
stations have wave lengths of over 2,000 meters) ; 
it will be used for communication with western Europe, 
while the Kosice station is intended for communciation 


THE POSTAL SERVICE 161 


with eastern Europe. In Karlovy Vary there is being 
built a radio-telegraphic station with a wave length 
of about 1,100 meters. On the governmental aviation 
field in Kbely there is being erected a radiographic 
station for the purposes of aviation only. 

The transmission of telegrams between Czechoslo- 
vakia and the United States of America is done over 
the direct telegraph wires of Prague-Paris (system 
Baudet) and Prague-London (system Baudet), thence 
to Brest-Havre, or over the wires of the British or 
French cable companies (Anglo-American Telegraph 
Company, Compagnie Francaise des Cables Teélé- 
graphiques, Commercial Cable Company, Eastern Union 
Direct United States Cable Company). In conse- 
quence of these arrangements, cable communication 
with the United States of America, as compared with 
the cable service of other States of Central Europe, is 
a superior one. When the radio-telegraphic service 
has established connections with the four large trans- 
atlantic radio-telegraphic stations (French, German, 
Polish, and British), the transmission of messages 
will be further improved. The cable then will not be 
so heavily overladen and a lower rate for the trans- 
mission of deferred cablegrams, lettergrams, press 
dispatches, etc., may be introduced. With other distant 
countries Czechoslovakia communicates largely through 
the cables of the largest world cable company, the East- 
ern Telegraph Company. Dispatches to South America 
are directed via France, but later on may also be directed 
via Italy, for that country is now laying a cable to South 
America. 

During the former régime, there were only a few 


162 CZECHOSLOVAKIA 


direct telephone lines between the important industrial 
centers of Bohemia and Vienna, and the same may be 
said about Slovakia and Budapest. There were, how- 
ever, no direct internal lines connecting Bohemia with 
Moravia and Slovakia, the establishment of which was 
one of Czechoslovakia’s first tasks. 

The telephone service with Austria has been improved 
as has also the service with Germany. At present 
Czechoslovakia possesses two direct telephone lines to 
Berlin, Dresden, Leipzig, and Nuremberg. Décin also 
has a direct telephone line to Dresden. With Poland 
telephone communication has also been established. 
At present other direct lines are being constructed 
for communication with Germany: Prague-Berlin, 
Prague - Hamburg, Karlovy Vary-Chemnitz, and 
Liberec-Goerlitz. A direct line is planned for the 
connections Prague-Zurich, Prague-Budapest, and 
Prague-Zagreb. 

Shortly after its establishment, the Czechoslovak Re- 
public became a member of the World Postal Union 
and a party to the International Telegraph Treaty and 
the International Radio-telegraph Treaty. Owing to 
successful negotiations with foreign countries in regard 
to mutual postal regulations, Czechoslovakia is at pres- 
ent in postal communication with nearly all the coun- 
tries of the world. 

In November, 1921, an international radio-telegraph 
conference was held at Prague which was attended by 
representatives of all the succession States of Austria- 
Hungary, and of Germany and Bulgaria. The confer- 
ence concluded agreements concerning the establishment 
of direct international telegraphic lines, rates, the main- 


THE POSTAL SERVICE 163 


tenance of lines, the speedy dispatch of telegrams, the 
settlement of complaints, etc. 

The postal organization of Czechoslovakia includes 
a Postal Checking Bureau, established by the law of 
March 11, 1919 (No. 140 of the Collection of Laws 
and Regulations). The Bureau is a State institution 
under the direct supervision of the Ministry of Posts 
and Telegraphs. Through the post offices the Bureau 
accepts deposits for the persons or firms who have 
established accounts with the Bureau, and checks issued 
by the holders of the accounts are credited to the payees 
or paid in cash. The post offices throughout the State 
act as agents of the Bureau; they accept deposits and 
pay out money on orders of the Bureau. On December 
31, 1921, the Postal Checking Bureau held the follow- 
ing balances in the countries listed: 


Total 
Total de- turnover 
No. of posits (in No. of in 1921 (in 


depositors millions) transactions millions) 


Czechoslovak (Czecho- 


slovak crowns) ..... 63,739 2,390 49,917,198 162,546 
Belgium (francs)...... 65,514 715 15,918,409 55,733 
Holland (gulden)....... 55,410 138 7,034,528 6,967 
Japanatvyeny yen 9. 180,683 37. 36,300,009 2,382 
Hungary (Magyar 

CLOWNS Peart: ae o's 40,475 2,093 7,871,936 147,580 
Germany (marks)..... 759,930 10,998 428,163,000 1,192,445 
Austria (Austrian 

CFOWNS )}iperatie ys a. aeoene 177,465 33,803 39,784,677 981,142 
Switzerland (francs)... 42,740 12 25,096,230 17,776 


The postal administration employs 18,575 clerks of 
whom 73.8 per cent are Czechs and Slovaks, 24 per 
cent Germans and 2.2 per cent of other races. The 
postal administration also employs 18,941 mail carriers, 
chauffeurs, etc. 


164 CZECHOSLOVAKIA 


At present there are in Czechoslovakia 4,605 post 
offices and 3,688 telegraph offices. Automobiles mail is 
carried by 185 autobuses, 23 light automobiles and 48 
trucks. For the transportation of mail by railroads 
there are over 800 mail cars. The volume of mail car- 
ried daily is over 15,000,000 pieces of letter mail (in- 
cluding newspapers and printed matter) and over 280,- 
ooo parcels. 

The telegraph wires in use measure 126,826 kilo- 
meters. Telegrams average 256,577 per week and 
1,026,307 per month. 

The length of the interurban telephone wires is 77,- 
802 kilometers, the local telephone wires measure 167,- 
416 kilometers. There are 1,348 telephone centrals, 
and 85,717 subscribers. The number of local calls per 
month averages about 14,000,000, and the long distance 
calls number over 650,000 per month. 

The Ministry of Posts and Telegraphs shows the 
following revenue and expenditure since its establish- 
ment: 

From November I, 1918, to December 31, 1918, the 
revenue amounted to 17,689,800 crowns and the ex- 
penditure to 15,545,500 crowns. For 1919, the revenue 
was estimated at 177,937,000 Czechoslovak crowns and 
the expenditure at 160,284,600 crowns. ‘The actual re- 
ceipts for I919 were, however, 201,149,000 crowns 
and the disbursements 187,764,100 crowns. For 1920 
the receipts were estimated at 429,801,500 crowns and 
the expenditure at 420,859,120 crowns. The actual 
revenue amounted to 528,716,900 crowns and the ex- 
penditure to 413,140,200 crowns. In 1921 the receipts 
were estimated at 802,765,100 crowns and the actual 


THE POSTAL SERVICE 165 


revenue was 828,607,100 crowns and the expenditure 
1,026,310,300 crowns. For 1922 the preliminary esti- 
mate of receipts was 962,930,500 crowns, and of the 
expenditure 871,654,970 crowns. The actual realized 
revenue amounted to 902,277,474 crowns and the ex- 
penditure to 869,494,872 crowns. For 1923 the receipts 
were estimated at 1,162,054,000 crowns, and the ex- 
penditure at 880,358,000 crowns, and for 1924 the 
receipts at 1,089,313,000 crowns and the expenditure 
at 853,292,770 crowns. 

In the expenditure for 1919 and 1920 the high cost 
of living bonuses paid to the employees from a fund 
authorized by the Government were not included. In 
1921 the bonuses were included in the budget of the 
Ministry of Posts and Telegraphs, thus causing a deficit 
in the budget. In 1922, however, the revenue exceeded 
the expenditure, although the Ministry continued to 
pay the bonuses. 

The receipts of the postal administration would be 
much higher were it not for the free transportation of 
a huge volume of official correspondence. The privi- 
lege of free mail is also extended to municipal and 
parochial offices, to charitable institutions, chambers of 
commerce, etc. In Austria before the war, correspond- 
ence of this kind amounted to one-seventh of all the 
letters carried through the mails. The postal authori- 
ties are contemplating a drastic revision of the franking 
privilege which naturally will bring about a considerable 
increase in the revenue of the Ministry of Posts and 
Telegraphs. 


XII 
BANKING 


KAREL KARASEK, DIRECTOR OF THE INDUSTRIAL AND AGRICULTURAL 
BANK oF BoHEMIA, PRAGUE 


The old Austro-Hungarian Empire had two eco- 
nomic centers, Vienna and Budapest, which controlled 
the economic life of the provinces and which, in conse- 
quence, became the seat of the largest and most influ- 
ential banks. The banks themselves favored this 
economic centralism which was also supported by the 
Government’s policy of taxation. Just as, after the 
foundation of the German monarchy, the establishment 
of the large Berlin banks had led to a concentration of 
economic activities in Berlin to the detriment of Frank- 
fort, Dresden and Hamburg, so the big banks of Vienna 
helped to maintain the controlling influence of Vienna 
in Austrian economic life, although about 80 per cent 
of the industries were concentrated in Bohemia and 
Moravia. 

Under such circumstances it is not surprising that 
the first banking institution established in Prague in 
1857 should have been a branch of the Vienna Oest. 
Creditanstaldt fur Handel und Gewerbe. It was only 
in 1863 that the first independent bank was established 
in Prague, and that was the Bohemian Discount Bank, 
established by German bankers and industrialists of 

166 


BANKING 167 


Prague. In 1867 followed the establishment of the 
Agricultural Credit Bank for Bohemia, among the 
founders of which were some Czech noblemen. The 
first bank was to serve the German financiers and busi- 
ness men, the second was to assist agriculture and the 
agricultural industries. After the establishment of 
these two banks the first Czech bank was founded in 
1869—The Zivnostenska Banka for Bohemia and 
Moravia—founded, as its name suggests, to promote 
the interests of trade and industry. 

At the end of 1872 there were in Prague nineteen 
joint-stock banks with an aggregate capital of 44,000,- 
ooo florins (1 florin=2 prewar Austrian crowns or 
$0.405 ), but their financial reserves were, in most cases, 
weak as was proved in May, 1873, when the Vienna 
crisis broke out, for only four of the Prague banks 
survived the crisis: the Bohemian Discount Bank, the 
Agricultural Credit Bank, the Zivnostenska Banka, and 
the Bohemian Union Bank. Of the provincial banks 
only two remained, one of which, transferred later to 
Prague, has become one of the greatest Czech banks. 
It is the Prague Credit Bank. 

The crisis of 1873 had brought such enormous losses 
to financial enterprises and so shaken the confidence 
of the public that for many years economic life ap- | 
peared to be almost paralyzed. For twenty-five years 
not a single new joint-stock bank was established in 
Prague. The Vienna banks, on the other hand, estab- 
lished several new branches in Bohemia. In 1877 a 
branch of the Anglo-Austrian Bank was established, in 
1890 one of the Vienna Bank-Verein, and in 1896 a 
branch of the Landerbank. A larger basis for banking 


168 CZECHOSLOVAKIA 


was created through the development of industry and 
commerce promoted by the industrial prosperity in 
1905 and 1907. In the period of 1898 to 1914, about 
twenty new joint-stock banks were founded, while the 
old banks greatly increased their capital. With a few 
exceptions the new institutions were mostly banks 
founded by Czechs seeking to counteract the supremacy 
of German banking, a supremacy due to economic 
centralism which had benefited Vienna but hampered 
and retarded the economic development of Bohemia. 
Down to the end of the last century, the Czech indus- 
tries remained far behind the German industries, and 
the energy of the Czech nation in that period was con- 
centrated mainly in agriculture and trade. The founda- 
tion, however, was laid for the industrial and commer- 
cial development which has taken place in the last two 
decades. The conditions then prevailing found an ex- 
pression in the development of Czech banking and its 
relations to the German banks. At the end of the last 
century the Czechs had but one great bank (the 
Zivnostenska Banka), while the Germans had two large 
banks and branches of four Vienna banks. The suprem- 
acy was, therefore, on the side of Vienna, which con- 
trolled several of the biggest industrial establishments 
in the Czech territories. In Slovakia, of course, the 
controlling interest was in the hands of Budapest; up 
to the outbreak of the war it was hardly possible to 
speak of Slovak banking. Of the total bank capital 
in the Czech territories, only about a fourth was in the 
hands of Czech banks at the end of the last century. 
The development of the Czech banks in the last two 


BANKING 169 


decades was therefore an attempt to secure to Czech 
banking its due place, and the attempt was successful. 

The war itself contributed to a great extent to the 
favorable development of Czech banking. The banks 
in Austria, as a matter of fact, did not suffer through 
the war; the balance sheets of the banks in Czech terri- 
tories show that their war losses were insignificant. 
The inflation and the depreciation of the currency were 
no doubt the main causes of the comparative prosperity 
of the banks during the war, for, through the inflation, 
both industries and banks were enabled to realize con- 
siderable profits. Bank deposits increased steadily, and 
the Czech banks in particular profited by the prosperity 
of the farmers. The Czech peasant is known as intel- 
ligent and industrious, and his savings made during 
the war were deposited in Czech banks. So it happened 
that through the war and through the establishment of 
the Czechoslovak Republic, Czech banking gained con- 
siderable advantages over the German banks. 

In the Czech territories, with the exception of Slo- 
vakia, there are at present thirty-seven joint-stock 
banks. Of these ten are in German hands and twenty- 
seven in Czech hands. These banks have about 25 
billion crowns of paid-up capital and deposits. Of this 
total 10 billion may be credited to German banks and 15 
billion to Czech banks, so that the ratio between Czech 
and German banks which had been 25:75 at the end 
of the last century has been changed to 60:40. 

To complete our exposition we now give the balance 
sheets of fourteen large Czechoslovak banks each with 
a paid-up capital exceeding 50 million crowns. Four 


170 CZECHOSLOVAKIA 


of these fourteen banks are in German hands: the 
Bohemian Discount Bank, which has taken over the 
branches of the Oesterr. Credit-Anstalt; the Bohemian 
Union Bank; the Bank for Commerce and Industry, 
which was established through the conversion of the 
branches of the Oesterr. Landerbank into an inde- 
pendent bank; and the Bohemian Commercial Bank, 
which was founded through the consolidation of the 
branches of the Vienna “Merkur” bank. The paid-up 
capital, with reserves, in million crowns, is shown in 
the following table: 


1900 1905 I910 1914 1918 1920 1921 1922 
Zivnostenska Banka .... 29 36 80°) (.I35r 0360/16 1903 5 ada ado 
Bohemian Discount Bank. 23 28 28 29 Zi 105, e200 To 
Bohemian Industrial & Ag- 


ricuitvutal) Bank wiyuks is ne bs is a ae aie 198 270 
Anglo-Czechoslovak Bank. .. ie iy ote Be ae a 167 
Moravian Agrarian & In- 

dustrial (Bank's. 502.3. Bah Bes 8 15 47. 198 192 198 
Bank for Commerce & In- 

CSIR ana as Sik Sales aie, ae Sie! es we ae a)" Se) oka 
Bohemian Commercial Bk. .. tA <5 me os 58 95) 108 
Prague Credit Bank..... 7 9 32 41 BS 11325 14907 wei a7 


Gen. Czech B’king Union. .. +; 2% a a es ah 88 
Bank of the Czechoslovak 


1 BS Fed a) oR el ey ae Pe) ae ae ia as 81 89 
Bohemian Agrarian Bank .. te bie 4 13 86 87 87 
Bonemianrbank vow. ss care 2 A oe 4 8 22 72 74 75 
Moravian Discount Bank. es ee ae ve 38 ei 


DEPOSITS IN CURRENT AND SAVINGS ACCOUNTS IN 
MILLION CROWNS 
; 1900 1905 I910 1914 1918 1920 1921 1922 
Zivnostenska Banka .... 103 125° 248 205° 1,567 4,229)" 4,716 (4,316 
Bohemian Discount Bank. 409 71 120 155 392 2,080 2,494 2,383 
Bohemian Industrial & Ag- 


Ticuithral Bank vei cs 42s A aie ite Aa de ol E35 LOOM aaa S 
Bohemian Union Bank.. og1 122 232 -241 754 1,933 2,394 2,383 
Anglo-Czechoslovak Bank. .. oe 27 44.) 458) 1,210) 1,350 estas 
Bank for Commerce and 

Tmateteyins yn Pied cep ee $2 ae ae se a ss, 908020. 238 
Bohemian Commerecial Bk. .. es te ae so 4a Soran 
Prague Credit Bank..... 23 32 56 81 340 1,396 1,464 1,410 
Gen. Czech B’king Union. di iy ae te <3 a 27 
eee of the Czechoslovak 

CPIOTIS weave et a cieistet ate. ohare ae Aig avs wis ee fa 2 86 
Bohemian Agrarian Bank. .. i as 16 469 998 ope stage 
Bohemian “Bank i>. .).)... sie e's 14 22 76° 305/451 >) S26 


Moravian Bank ......... ae + cS a i one (2989 909 


BANKING 171 


These figures illustrate the development of Czecho- 
slovak banking since the end of the last century. They 
show how small the capital of the banks was twenty- 
two years ago, amounting to only about 400 million 
crowns; they show further how the capital rapidly in- 
creased from 1905 to I910 to 1,055 millions, and finally 
they show the effects of the monetary inflation during 
and after the war. The capital of the banks increased 
in the years 1914 to 1918 from 1,338 million crowns to 
5,254 millions, increasing approximately four times, 
the increase nearly corresponding to the depreciation of 
the crown at home. The depreciation continued, how- 
ever, and by the end of 1921 the banking capital had 
increased to 19,467 million crowns, i. e., about fourteen 
times in comparison with the year 1914. And such 
was, in fact, the prewar depreciation of the currency 
at home, 1.e., so many times the cost of living had 
increased in comparison with prewar times. This is 
undoubtedly an interesting fact showing the connection 
between the value of the currency and the nominal 
amount of banking capital. 

Having described the development of Czechoslovak 
banks we shall now investigate their transactions, their 
enterprise, and their relation to the economic life of the 
country. In the rich western European countries in- 
dustry and commerce were established long before the 
foundation of a banking system; they were the result of 
a development extending through centuries which 
needed no banks in its early stages. The banks have not 
only assisted the economic development—they served 
commerce and industry and were, at the same time, 
reservoirs of capital. In Central Europe, however, the 


172 CZECHOSLOVAKIA 


case was, in many instances, quite the reverse. Here the 
task of the banks was to establish industry and com- 
merce, to help in the foundation of new industrial con- 
cerns, to seek the commercial highways of the world, 
while, at the same time, as in Western Europe, accept- 
ing deposits from all parts of the country and from all 
classes of the population. In this way, in Central 
Europe, in Germany, Austria, Hungary and Italy, the 
type of a universal bank was founded, a bank doing 
all-around business and serving comparatively well the 
economic and financial needs of the population. 

The Czechoslovak banks, too, are of this general 
character. The industrial development in the Czecho- 
slovak territories was slow, for there were few capi- 
talists. This explains why in Bohemia the industrial 
and banking development has had a more democratic 
character than elsewhere. The Czech banks have grown 
up from small beginnings, all classes of population 
participating in their foundation, so that the shares of 
the Czech banks are in the hands of people of all classes. 
There are really no Czech banks exclusively controlled 
by big financial groups. Owing to the slow develop- 
ment of industry in Bohemia there were but few in- 
dustries with a large capital, and consequently an 
active participation of the banks in industrial concerns 
became necessary. This participation took the form of 
large credits to manufacturers and partly of direct 
organization of companies which would then take over 
large private concerns or found new ones. This direct 
assistance to industry was one of the main activities 
of the Czechoslovak banks. 

The following table shows the investment of the 
funds of the Czechoslovak banks: 


BANKING 173 


ASSETS IN 1922 


(in million crowns) 


Short- Bills Stocks 
term and and other 
Banks: loans notes securities Debtors 
Zivnostenska Banka ....... 369 790.6 110.5 3,176.4 


Bohemian Discount Bank.. 150.9 140.9 118.3 2,349.5 
Bohemian Industrial & Agri- 

Cilturalebankieaede eu. 161.5 356.7 154.6 1,870.3 
Bohemian Union Bank..... 214.8 216.3 148.7 2,075.7 
Anglo-Czechoslovak Bank.. 117.5 ™20.3 155.1 1,080 
Moravian Agrarian and In- 


Cistria toa tara tenes 25.4 38.8 117.9 T1371 
Bank of Commerce & Indus- 

LEVEL rie eet eee ie as III.5 99.5 47.4 F1i0:0 
Bohemian Commercial Bank 73.7 38 25 886.8 
Prague? Credit) ‘Bank. >... 35.3 297.8 104.6 1,050.8 
General Czech Banking 

Unione ote cctaiic eas ais 136.1 19.7 23.4 743.8 
Bank of Czechoslovak Le- 

RF TEMAS OR ee eR oc oe ey 85.1 2215 34.9 363.6 
Bohemian Agrarian Bank... 100.9 25.7 2971.2 840.5 
PMohemianvpankivovs se. ces s's 45.7 41.9 71.9 419.5 
Moravian Discount Bank... 65.6 46 8.8 249.7 


The reserve for current payments includes cash on 
hand and demand obligations, totaling in excess of 2 
billion crowns, and a reserve of negotiable paper which 
may be rediscounted at the banking office of the Minis- 
try of Finance. These represent about 25 per cent of 
the deposits and may be considered a sufficient re- 
serve. In this connection it should be mentioned that 
bills of exchange are now fewer than formely, as pay- 
ments in cash are now more in favor. The banks hold 
about a billion crowns, partly in Government bonds and 
partly in industrial bonds, the latter showing the in- 
fluence of the banks in industrial concerns. The banks 
hold from 10 to 30 per cent of the capital stock of 
various companies which, together with the credits 


174 CZECHOSLOVAKIA 


granted, is sufficient for their control. The greatest 
asset is represented, however, by the debtors holding 
credits granted to industrial concerns. ‘These credits 
are often secured by real estate mortgages, bonds, etc. 
Through these activities the banks control the economic 
life of the country because they alone are able to grant 
the credits necessary to industrial enterprises. 

Besides the general banking business, the Czecho- 
~ slovak banks deal also in bonds and other securities, 
buy and sell foreign exchange, and arrange for payment 
abroad. All the great banks have connections with 
foreign banks, especially with the banks in Germany, 
Yugoslavia, France, Italy, England, and the United 
States. 

To show the activities of the Czechoslovak banks it 
is necessary to show their profits and expenses. These 
are shown in the table on the following page. 

Most of the profits are derived from interest, 1.e., 
from the difference between the interest on deposits and 
loans. The banks pay at present 4 to 4% per cent in- 
terest on deposits, but demand 7 and 7% per cent. 
Moreover, they receive a commission on checking ac- 
counts, on foreign exchange and similar transactions. 
Profits made on deals in securities, bonds, etc., are 
included under the heading of “various profits.” Ex- 
penses are large so that the net profits of the banks are 
not extensive. Dividends paid by the banks amount to 
about 6 to 14 per cent of the paid-up capital. Before 
the war the highest dividend was about 8 per cent. 
As nearly all banks pay good dividends the shares. of 
the banks are in great demand by investors. 

The banks, as a rule, do not show all their profits, 


BANKING 178 


for they are anxious to build up internal reserves for 
unforeseen losses, and thus to strengthen the confidence 
of the public. 

On the whole, Czechoslovak banking is in a very 
satisfactory state. The Czechoslovak banks have de- 
veloped into strong financial institutions fully satisfying 
the economic needs of an independent State and prom- 
ising well for the future. As the Czechoslovak Repub- 
lic is likely to become a creditor of the weaker eastern 
European countries, the Czchoslovak banks can not but 
gain in their importance and activities. 


PROFITS AND LOSSES IN 1G22 


(in million crowns) 


Interest 
v 
hae 
f=| ~~ 
2 5 2 
Banks: 3 a 2 23 pepe 
> F 3» aa miele 
5 8 Sate Geary are 
yg oO & q&a Gv AY 
"od o aie oo & oo fo 
ral 4 oO > oe <0 & oy} 4 
Zivnostenska banka. 216.4 313.7 45 x3 fark) Po 5-3 52.2 
Bohemian Discount 
Bariledeenyertsts ceisler 58 130:2,/ 427.68 527.3. 0) 065.5, ) 45 5 32 
Bohemian Industrial 
& Agricultural Bk. 90.2 153.7 28 13.61) 1 160.6 II.2 32.3 
Bohemian Union Bk. 74.5 148.2 41.4 26 82.4 - 22.4 3: Qaes sek 
Anglo-Czechoslovak 
Bank ...... Soe eh 87 26.5 Tesh Pas gE 0.7 20.2 
Moravian Agric. & 
Tidises bau bran we tOO.2) 1k 30s te alee 2.805 20.5 2.9 $.4°°) 16.3 
Bank for Commerce 
and LINGustLry mess 04.300 O3c4 it Scs She), eRe 10 0.1 16.2 


Bohemian Commer- 

cial $Bankgper ccs 22.OMn As Sant Isd: 14.1 27.4 2.7 4.4 13-7 
Prague Credit Bank. 78.8 116.6 17.2 12 34.9 7.8 2,9! 921.7 
Gen. Czech Banking 


Unioniescanioe sso 44.5 66 15.4 ao, (26,3 7.8 2.1 8.9 
Bank of Czechoslo- 

vak Legions ..... 22 3 ak 8.7 2.5)) “t44 0.6 6.3 5.4 
Bohemian Agrarian 

Bank ........+.- BO FATTO 5.8; 17.0 4.3 9.6 6.5 
Bohemian Bank ... 9.4 19.1 7.8 2.6 9.5 2.5 74 6.9 


Moravian Discount 
Bramlesinie ctasieterete ale 14 24.1 4.1 2 6.8 3.3 1.3 5.5 


XIII 
CURRENCY CONDITIONS 


Dr. VirrpALp MitpscHuH, PROFESSOR AT THE CHARLES UNIVERSITY, 
PRAGUE 


I. THE SITUATION AT THE TIME OF THE ESTABLISH- 
MENT OF THE REPUBLIC 


The limited financial resources of the former Empire 
compelled the Government of Austria-Hungary to cover 
its war expenditure by the issue of bank notes. On 
July 23, 1914, the total circulation of bank notes in 
Austria-Hungary had been only 2,129 million crowns; 
during the war it increased by October 26, 1918, to 
30,679 million crowns, an increase of 28,550 million 
crowns. As the total national income of Austria- 
Hungary was estimated before the war at 1g billion 
crowns, it will be seen that the increase of currency 
during the war amounted to 150 per cent of the total 
national income and that the money income had there- 
fore increased to the same extent, although there was 
no increase in the economic values. As a natural result, 
the cost of living increased with the income. Exact 
figures relating to the increase of prices in Austria- 
Hungary during the war are not available, but it may 
be safely estimated that at the end of the war the 
prices were about five times the prewar prices, although, 
on account of Government control. the prices of some 

176 


CURRENCY CONDITIONS 177 


agricultural products and the rents were kept at the 
old level. | 

With the decline in the buying power of the Austrian 
crown its exchange value also declined. At first the 
decline was not very marked, for, on October 25, 1918, 
the Austrian crown was still valued in Zurich at about 
44 Swiss centimes. When, however, the old monarchy 
collapsed and new States arose out of its ruins, with 
Czeschoslovakia the first among them, the exchange 
value of the Austro-Hungarian crown declined rapidly, 
and there were reasons to expect that the decline would 
continue. That would naturally depress the value of 
the Austrian war loan bonds. Consequently, the hold- 
ers of the war bonds endeavored to turn the war loan 
bonds into cash, as the Austro-Hungarian Bank was 
bound to make advances on them up to 75 per cent of 
their nominal value. There was, therefore, an immi- 
nent danger that the war bonds would soon be turned 
into bank notes and the evils of monetary inflation 
increased. There was another dangerous possibility, 
namely, that the Austro-Hungarian Bank would issue 
new bank notes for the credit of the various succession 
States and thus bring about a depreciation of the cur- 
rency even in those States which did not issue any 
new notes. Dr. RaSsin, the first Czechoslovak Minister 
of Finance, hoped at first to check this danger by 
negotiations with the Austro-Hungarian Bank. When, 
however, these negotiations failed to bring the desired 
results (the Austro-Hungarian Bank continued to make 
advances on the war loan bonds and to print new bank 
notes), Dr. Rasin decided to take independent measures, 
He prohibited the branches of the Austro-Hungarian 


178 CZECHOSLOVAKIA 


Bank in Czechoslovak territory to make any further 
advances on the war bonds; established an independent 
Czechoslovak postal savings department; refused to 
recognize the new provisional Austrian twenty-five, 
two hundred, and ten thousand crown notes; and 
made preparations for a complete separation of the 
Czechoslovak from the Austro-Hungarian currency 
by stamping the notes circulating in the Czechoslovak 
territory. 

The stamping of the notes was done in the week 
of March 3-9, 1919, under the authority of a law 
passed by the National Assembly on February 25th. In 
the night of that same day, February 25th, all frontier 
traffic was stopped until March oth, to prevent the im- 
portation of new bank notes. Only notes of ten, twenty, 
fifty, one hundred, and one thousand crowns were 
stamped, and the one and two-crown bank notes were 
provisionally left in circulation unstamped. Later on, 
however, in the fall of 1919, when the Czechoslovak 
State notes, printed in America, were ready, these one 
and two-crown bank notes, together with the stamped 
bank notes, were withdrawn from circulation and ex- 
changed for Czechoslovak State notes. In this way 
the separation of the Czechoslovak currency was carried 
out relatively early and easily. The necessity and 
timeliness of this action was soon demonstrated by the 
differences in the movement of the Austrian and the 
Czechoslovak exchange. 

At the time of the stamping of the bank notes, Dr. 
Rasin retained one-half of the bank notes submitted for 
stamping as an enforced State loan. Some of the 
amounts thus retained were, however, released later, 


CURRENCY CONDITIONS 179 


so that the sum retained did not exceed 28.69 per cent 
of the total amount of 7,436 million crowns of stamped 
notes. For the retained amounts the owners received 
I per cent State certificates which were to be paid in 
the coming years out of the revenue derived from the 
levy on capital and from the tax on the increase of 
capital during the war, and these measures were intro- 
duced at the same time. Until then the bank notes thus 
retained were to be kept in the banking department of 
the Ministry of Finance and not to be placed in circu- 
lation. Through these measures Dr. Rasin sought to 
reduce the amount of the fiduciary circulation in order 
to place the finances of the State on the regular credit 
system, so that everything the State needed could be 
obtained through regular credits granted by the bank 
of issue, or, as was the case in Czechoslovakia, by the 
Banking Department of the Ministry of Finance acting 
provisionally as a bank of issue. As a matter of fact 
there was at that time such an abundance of paper cur- 
rency that the banks paid only one per cent interest on 
deposits, and the object of Dr. Rasin, the reduction of 
the fiduciary circulation, was fully accomplished by 
those measures. 


Il. Tur MoveEMENT OF PRICES 


By the separation of its currency Czechoslovakia put 
a stop to monetary inflation, yet in the years 1919 and 
1920 prices in Czechoslovakia increased considerably, 
though not to such an extent as in the neighboring 
countries. There was an increase of prices not only 
in the first year after the war, when prices everywhere 
showed an upward tendency, but also in the second 


180 CZECHOSLOVAKIA 


year after the war, when in England and elsewhere 
the prices showed a downward tendency. 

The enormous increase of prices in Czechoslovakia in 
1920 is strikingly shown in a comparison of the pre- 
war index of prices with that of 1920. At the time of 
writing no official figures as to the increase of prices 
are available, but reliable data relating to the increase 
of prices of the principal products have been compiled. 
Taking 100 as an equivalent of the prices current in 
the first half of 1914, the prices of the principal articles 
at the end of 1920 were as follows: Flour 460 (price 
fixed by the Government), beer 857, sugar 964, fire- 
wood 1,142, beef 1,190, cowhides 1,675, petroleum 
1,786, butter 1,929, coal 2,134, iron 2,682, cotton cloth 
4,208. The average of the prices was 1,542, so that 
the prices in Czechoslovakia had increased 15.5 times 
over the prewar level, an increase which, in comparison 
with western European countries, was unusually large. 
In this connection it is necessary to mention that the 
prices of some commodities, such as flour, sugar, and 
rent, were controlled by the Government; otherwise the 
prices of these articles would have been much higher. 

In 1921 and 1922 the movement of wholesale prices 
was as follows (official figures; July, 1914, prices 
taken at 100): 

Jan. Feb. March = April May June 


OZR ae cots TASB iT 400 ET S19 223 nT A2O ge e7O 
W422 ae er ee ae T0755 1,520 7 1,554 ud AQ tant 7 eee ae 

July Aug. Sept. Oct. Nov. Dec. 
LOAI aware icine oe 132505) 0,361 nu T0523) ut Osa aul Oolaenl Ose 
TO22 ies cin noha Pd0A 7h. 3009) 71a Le Gael OCG met Org 999 


It will be observed that the prices reached the highest 
point at the end of 1920 and began to decline in the 


CURRENCY CONDITIONS 181 


beginning of 1921, and that by July of that year the 
prices had decreased nearly 20 per cent. But in the 
second half of 1921 a new increase of prices is to be 
observed. This increase was, of course, the result of 
the abolition of the Government control of prices of 
the principal agricultural products and of the re- 
establishment of the freedom of the internal trade. The 
former alone does not explain the great increase of 
prices, for the withdrawal of Government control ac- 
counted for 244 points only, while the actual increase 
between July and December, 1921, was 415 points. In 
1922 there was, however, a steady decline of prices 
which was especially rapid in August of that year. 


III. INTERNAL FINANCIAL CONDITIONS 


What was the cause of the downward movement of 
prices in Czechoslovakia coming so late? Was it mone- 
tary inflation? 

Here we may draw attention to the fact that the un- 
fortunate consequences to which the monetary inflation 
had led in former Austria-Hungary and in the neigh- 
boring countries were one of the main reasons for the 
Czechoslovak Government to take measures to stop 
further monetary inflation. This was accomplished by 
the law of April 10, 1919, which provides in section 
10 that the total circulation of uncovered notes must 
be limited to the amount of the notes originally 
stamped, plus the amount of notes used up to 
one-half of the total amount of the checking accounts 
and scrip taken over by the Czechoslovak Republic from 
the Austro-Hungarian Bank, and the amount of the 
one and two-crown notes circulating in the Czechoslo- 


182 CZECHOSLOV ARTA 


vak territory. Any further increase of circulation is 
permitted only if the notes are fully covered by gold 
and silver, or by discounted bills, advances on stocks 
and shares, and foreign bills. By this law the mone- 
tary inflation, it is true, was not completely prevented, 
for even then the State could again obtain advances 
in notes at the Banking Office of the Ministry of 
Finance, but the possibility of inflation was, neverthe- 
less, reduced to narrow limits by the passage of this 
law. As a matter of fact, there has never been any 
monetary inflation in Czechoslovakia. This is proved 
by the returns of the Czechoslovak Banking Office. 
According to these returns, the monetary situation in 
Czechoslovakia developed as follows: 


(In thousand Czechoslovak crowns) 
September 15 


1920 1921 1922 1923 

Notes in cirtulation........ 9,891,346 11,253,828 9,837,009 8,925,099 
DISCOUNTS! yaa sine detuastoce ere e 906,273 eee 321,485 585,416 
Advances on securities...... 2,249,956 2,516,424 1,559,055 925,351 
Foreign bills and balances... 303,949 803,849 1,736,393 2,444,593 
Gold and silver holdings... 252,808 593,128 727,665 1,060,763 
Unsecured circulation ...... 6,178,360 6,483,270 5,492,411 3,908,976 
Legal maximum circulation 

GE THROES Siete etlate vo chon 3 10,452,454 11,787,438 11,343,835 12,020,145 
Note Wresefve? vif: bp oe ve 561,108 533,610 1,506,826 3,095,046 


The increase or decrease in the circulation of notes 
does not depend on the needs of the State, but is af- 
fected mainly by commerciel needs. 


IV. ExtTerRNAL Causes AFFECTING THE PRICES 


It is therefore necessary to inquire whether the 
causes of the increase or decrease of Czechoslovak 
prices may be found in external influences, especially 
in the rate of exchange of the Czechoslovak currency. 
In the fluctuation of foreign exchange both the in- 


CURRENCY CONDITIONS 183 


crease and the decrease in the rate usually correspond 
to a contrary movement of prices. In the case of 
Czechoslovakia the increase of prices until the end of 
1921, and the following decrease, correspond first to 
the decrease and then to the increase in the rate of 
exchange of the Czechoslovak crown. 

What were the causes affecting the changes in the 
rate of exchange of the Czechoslovak crown? Here 
we may consider, first of all, the fluctuations in the 
supply of and the demand for the Czechoslovak crowns 
both of which have their origin in the changes in the 
trade balance. Was the trade balance of Czechoslo- 
vakia in the years I9I9-1921I so unfavorable and 
the demand for foreign currencies so great as to affect 
the rate of exchange to such an extent, or has Czecho- 
slovak trade balance in 1922 improved so much as to 
cause such a great demand for Czechoslovak cur- 
rency? Nothing of the kind has happened. In 1919 
Czechoslovakia had no official statistics of imports and 
exports, but on the basis of the import and export 
licenses granted it has been calculated that the imports 
exceeded the exports by 1,231 million Czechoslovak 
crowns. The excess of imports was therefore not 
very great. For 1920 and 1921 official statistics of 
the Czechoslovak foreign trade have been published, 
showing that in 1920 the exports exceeded the imports 
by 4,185 million Czechoslovak crowns and in 1921 by 
4,878 million Czechoslovak crowns. In 1922 the 
foreign trade balance was in favor of Czechoslovakia 
to the amount of 5,391 million Czechoslovak 
crowns. It is evident that the great decline of the 
Czechoslovak crown in the years 1919-1921 could 


184 CZECHOSLOVAKIA 


not have been caused by an unfavorable balance 
of trade. 

It appears, therefore, that the causes of the decline 
of the Czechoslovak crown until the end of 1921, and 
of the following rise of the Czechoslovak crown, can 
not be sought in the fluctuations of supply and demand, 
nor in any other obvious facts, but rather in the 
changes of the point of view regarding the Czecho- 
slovak crown. What were the influences affecting that 
change of foreign opinion? The development of the 
German mark is, in this respect, highly instructive. 
Until the end of 1921 we see a surprising similarity 
in the development of the mark and of the Czecho- 
slovak crown. Just as the Czechoslovak crown de- 
clined between May, 1919, and February, 1920, from 
25 to 5 Swiss centimes, so also the German mark 
dropped from 41 centimes on June 28, 1919, to 5.62 
on January 26, 1920. An improvement in the crown 
rate was accompanied by a rise in the rate of exchange 
of the German mark to 18.60 centimes on May 20, 
1920, which again was followed in both cases by a de- 
crease. The mark stood at 7.70 centimes in the middle of 
November, 1920. Another small rise to 10.55 occurred 
in February, 1921, followed however by a new and 
steady decline which was much greater in the case 
of the German mark than in the case of the Czecho- 
slovak crown, so that in August, 1921, the exchange 
rate of the mark in Zurich was much lower than that 
of the Czechoslovak crown. The difference between 
the Czechoslovak crown and the mark increased stead- 
ily, especially so after November, 1921, when the 
Czechoslovak crown began to rise while the mark con- 


CURRENCY CONDITIONS 185 


tinued to fall. The similarity in the course of the 
German mark and the Czechoslovak crown until the 
fall of 1921 would become still more obvious if it 
were shown on a diagram. 

This similarity shows that in both cases, in the 
development of the mark as well as in the development 
of the Czechoslovak crown, the same causes were op- 
erating. The cause affecting the German mark, as is 
generally known, was the expectation that on account 
of the reparation payments German currency would 
steadily depreciate. There was also another contribut- 
ing factor, namely, the expected monetary inflation on 
the part of Germany. Czechoslovakia, on the other 
hand, as a victorious State, was not burdened with 
reparations and the country was practically free from 
monetary inflation. But owing to insufficient knowl- 
edge of the economic resources of Czechoslovakia and 
to its close economic relations with Germany, the 
Czechoslovak crown was placed abroad on a level with 
the German mark. When, however, in the fall of 
1921, the mark began to decline rapidly it had become 
evident that there was no reason to class the Czecho- 
slovak crown with the mark, and consequently the 
Czechoslovak crown was valued differently, and its rate 
of exchange started on an independent course. The 
circumstances which had existed before, namely, the 
rich economic resources, the absence of monetary in- 
flation, a favorable trade balance, etc., were now fully 
appreciated as justifying the belief that in the future 
the crown would improve rather than depreciate. 

The consequence of this just expectation was that 
the Czechoslovak crown which, as we have seen, had 


186 CZECHOSLOVAKIA 


for a long time been quoted below its purchasing power 
at home, and was therefore undervalued, now, after 
its rapid rise in July, 1922, was quoted abroad above 
its internal buying power, and consequently was over- 
valued in comparison with other currencies. How far 
the Czechoslovak crown was undervalued or over- 
valued can be approximately ascertained by a com- 
parison of the levels of prices existing in Czechoslo- 
vakia and abroad at certain periods (October 1920, 
May 1921, January 1922 and September 1922). The 
value of the monetary units of the foreign countries, 
when expressed in Czechoslovak crowns, ought to cor- 
respond to the ratio of prices if the Czechoslovak 
crown were neither overvalued nor undervalued. If 
then the actual exchange value of the foreign monetary 
unit, as expressed in Czechoslovak crowns, is higher 
than the value calculated on the basis of prices, then 
the Czechoslovak crown is undervalued in comparison 
with the foreign unit; if, however, the value of the 
foreign unit, as expressed in Czechoslovak crowns, is 
lower, then the Czechoslovak crown is overvalued. 

The following table shows how the Czechoslovak 
crown, compared with the monetary units of other 
countries in accord with this calculation, was either 
overvalued (++) or undervalued (—): 


(Per mille) 
Oct. 16, May 16, Jan. 16, Sept. 12, 


1920 1921 1922 1922 
PENG lane ens s cones cote —123 —68 —I3 + 34 
Wtited: StAteS ies unta anise —II4 —42 —I + 46 
Liale Ge ees ahd wits — 60 —72 —o9 + 61 
Germanys comes cone tence — 4 — 7 +63 +145 


From this table we can clearly see how greatly the 


CURRENCY CONDITIONS 187 


Czechoslovak crown was undervalued in the second 
half of 1920 as compared with the monetary units of 
the western states. In the second half of 1922 this 
undervaluation of the Czechoslovak crown was turned 
into a considerable overvaluation. In 1923, however, 
due to the decline of prices in Czechoslovakia, the rate 
of exchange of the Czechoslovak crown corresponded 
fairly well with its buying power at home. 


V. THE CONSEQUENCES OF UNDERVALUATION AND 
OVERVALUATION OF THE CURRENCY. 


Every considerable and lasting undervaluation or 
overvaluation of the currency must of necesssity have 
important consequences for the whole economic life 
of a country, and such has also been the case with 
Czechoslovakia. When the currency of a country is 
undervalued, as was the case in Czechoslovakia from 
the second half of 1919 with slight variations until 
the end of 1921, it is possible to receive for the ex- 
ported goods, even if the prices abroad do not rise, 
more units of the domestic currency. As the wages, 
the prices of raw materials, and other expenses at 
home do not change in the beginning at least, the ex- 
porters obtain a special gain the consequence of which 
is an increase of production, full employment, improve- 
ment of the trade balance, and also an improvement 
in the rate of exchange, if not counterbalanced by 
other stronger forces. With the increased demand 
of the manufacturers for raw materials and workmen, 
the prices of the raw materials and the wages of the 
workmen increase also and the increased income stimu- 
lates the demand at home for other goods, and there 


188 CZECHOSLOVAKIA 


are better prospects for other branches of production. 
These effects are on the whole similar to those produced 
by monetary inflation. The other side of this state of 
affairs is, however, that with a depreciated currency 
the prices of imported goods also increase, and later on 
the prices of the export goods, too; there is an increase 
in the cost of living, wages, salaries, and taxes must, 
of necessity, be increased, and the cost of production 
rises again and the index of prices goes steadily up. 
In order to check the increase of the prices, the Govern- 
ment subsidizes the imports of necessaries, assumes 
control of production, and eventually also monopolizes 
the sale of goods. 

All these consequences were to be observed in Czecho- 
slovakia. The Czechoslovak exports increased (in 1920 
the exports were 69,022,209 quintals, but rose to 
97,427,354 quintals in 1921, and to 94,902,625 quintals 
in 1922) and the trade balance was more and more 
favorable. The profits of the exporters were propor- 
tionally high, and the Government sought to obtain a 
share of them by high export duties, or by control of 
the exportation of some of the more profitable articles 
such as sugar, alcohol, malt, etc. The income of the 
Czechoslovak State from these sources in the years 
IQIQ, 1920, and 1921, amounted in the case of sugar 
to over 5 billion Czechoslovak crowns, and in the case 
of alcohol and malt to over 1 billion crowns. Unem- 
ployment, in comparison with the western states, was 
proportionately small. Thus, for instance, according 
to the figures of the Czechoslovak State Statistical 
Office, the number of the registered unemployed in the 
beginning of 192I amounted to 100,000 and varied 


CURRENCY CONDITIONS 189 


between 60,000 and 100,000 for a time. The number 
of the unemployed amounted to about 3 per cent of 
the total number of workmen. On the other hand, 
in the second half of 1919 and in the years 1920 and 
1921 the prices went steadily upward, the population 
depending on salaries and fixed incomes suffered, while 
the unearned profits of the owners of supplies and of 
the producers and manufacturers increased. In con- 
sequence of the increase of the cost of living, the State 
subsidized the imports of cereals and flour, which 
again resulted in an increase of taxes and the conse- 
quent further rise in the cost of living. At the end of 
Ig2I the causes referred to above brought about a 
complete change at last, the undervaluation disappeared 
and was followed shortly afterward, in July, 1922, 
by an overvaluation of the Czechoslovak crown. 

What are the consequences of an overvaluation of 
currency? First of all, the exports diminish, for even 
if the prices abroad remain the same, the profits as 
expressed in the home currency decrease considerably 
even though the labor expenses at home remain the 
same. The consequence is that the exportation of cer- 
tain goods becomes impossible and the production there- 
fore diminishes, the trade balance becomes less favor: 
able, and that again tends to depress the rate of ex- 
change. With these consequences unemployment goes 
hand in hand, there is less demand for workmen and 
raw materials, wages go down and prices of raw ma- 
terials decline, the demand for domestic goods also 
decreases, and the industrial crisis sets in. However, 
with the improvement in the rate of exchange the im- 
ported as well as the exported goods become cheaper, 


190 CZECHOSLOVAKIA 


there is a corresponding decrease in the cost of living; 
salaries, wages, and taxes can be reduced, and the 
result is the reduction in the cost of production and 
consequently also in the price of manfactured goods. 
With the decline of prices, the rate of exchange rises, 
etc. 

These consequences also may be observed in Czecho- 
slovakia at the time of the increase in the rate of ex- 
change of the Czechoslovak crown. The trade balance 
became less favorable, unemployment increased, wages 
were reduced, the prices showed a downward tendency. 
It is interesting to note that when the prices had gone 
down so far as to correspond with the rise in the rate 
of exchange, the exchange showed again an upward 
tendency. | 


VI. CONCLUSIONS. 


The foreign quotations of the Czechoslovak cur- 
rency fluctuated, as we have seen, from one extreme to 
another, from a considerable undervaluation to a con- 
siderable overvaluation. Both of these phenomena pro- 
duce unfavorable results. The currency conditions are 
sound only when the currency is neither undervalued 
nor overvalued and is stabilized. But how is stabiliza- 
tion to be achieved? 

It is often assumed that it is sufficient to introduce 
the gold standard, for in that case the circumstances 
that would otherwise lead to an increased rate of ex- 
change (favorable balance of trade, etc.), will result 
in an influx of gold and the exchange will remain 
steady, while in the opposite case the factors that 
would otherwise cause a decline of the exchange, will 


CURRENCY CONDITIONS IQI 


be counterbalanced by exports of gold. However, for 
the introduction, and especially for the maintenance of 
the gold standard, certain things are indispensable. It 
is necessary, first of all, to establish an economic and 
financial balance. In this respect Czechoslovakia, as 
we have seen, has sought to avoid all monetary infla- 
tion and has endeavored to balance its income and ex- 
penditure, and thus to avoid also an inflation in the 
form of credits. The second condition is an economic 
and financial balance in those countries with which it 
is necessary to trade. This, of course, does not de- 
pend on one country alone, it can be brought about 
only by international cooperation. Only when these 
conditions have been fulfilled will it be possible to 
bring about a complete stabilization of the currency. 


GOVERNMENT FINANCE 


Dr. KAREL ENGLIS, PROFESSOR AT MASARYK’S UNIVERSITY IN BrNo, 
MEMBER OF PARLIAMENT AND FORMER MINISTER OF FINANCE 


Immediately after the establishment of the Czecho- 
slovak Republic the Czechoslovak State finances were 
naturally in a difficult position. The newly established 
State was confronted by great tasks such as the crea- 
tion of an army and an administration, the reconstruc- 
tion of railroads, and the building of new schools; it 
had to deal with social problems such as the care of 
the invalids, unemployment, food subsidies, and all 
this had to be accomplished in a country exhausted by 
the war. It was only natural that the performance of 
these great tasks seriously affected the finances of the 
State. The resulting crisis was complicated by the col- 
lapse of the financial administration throughout the 
State, and especially in Slovakia, and became all the 
more acute because ever since its establishment the 
State had refused to cover the deficits in its finances 
by the comfortable method of issuing new notes as 
was unfortunately the case in the neighboring States. 
Czechoslovakia, on the contrary, decided to cover its 
deficits by regular credits only. But the obtaining of 
credits at home was a matter of considerable difficulty 

192 


GOVERNMENT FINANCE 193 


on account of the general shortage of money. When, 
immediately after the establishment of the Republic, 
the first loan, the so-called National Liberty Loan, was 
issued, there was, of course, an abundance of paper 
money, a result of the Austrian currency inflation, 
and in the course of a few days one billion crowns was 
subscribed, but when, in the spring of 1919, the Czecho- 
slovak currency had become independent by the stamp- 
ing of the old Austrian notes circulating in the territory 
of the new Republic (on which occasion one-half of 
the privately held notes had been withdrawn from cir- 
culation and exchanged for I per cent certificates) there 
soon developed a considerable shortage of money which 
no doubt was favorable to the exchange value of the 
crown, but not to the State finances. 

The following two internal loans issued in 1919 and 
in the beginning of 1920 brought in about one-half of 
the yield of the first National Liberty Loan, so that the 
financial situation in the spring of 1920 became pre- 
carious. The flour subsidy, amounting to billions, was 
covered by profits made by the State treasury on the 
exports of sugar, but for the covering of other large 
deficits no credits whatever could be found, so that 
there was a great danger that the Government might 
not be able to avoid an inflation of the currency. The 
existing difficulties were increased by the decline of 
the Czechoslovak crown in the winter of 1919 and 
1920. At the time of the establishment of the Czecho- 
slovak Republic the Austrian crown then still in circu- 
lation in Czechoslovak territory was valued at 25 Swiss 
centimes. After the Czechoslovak currency became in- 
dependent in the spring of 1919, the Czechoslovak 


194 CZECHOSLOVAKIA 


crown rose to 34 Swiss centimes and then gradually de- 
clined to 4 centimes, a decline which was immediately 
followed by a rapid increase of prices, wages, salaries, 
and incomes in general. The general increase of prices 
made necessary an increase in the salaries of the State 
employees and Government expenditures grew apace. 

It became clear to every one that the decline of the 
crown must be checked as otherwise it would be im- 
possible to prevent new currency inflation and the sub- 
sequent collapse of the State finances, as was the case 
in the neighboring countries. To put a stop to the 
decline of the crown it was necessary to obtain large 
internal credits for a time at least until the State 
finances could be balanced. This task was accomp- 
lished within a year. 

In the summer of 1920 the Czechoslovak crown be- 
gan to rise, and in August, 1920, its value rose to 13 
Swiss centimes. For a time the Czechoslovak crown 
became stabilized at about 10 Swiss centimes and con- 
tinued to be quoted at that rate until the fall of 1921 
when an order for the mobilization of the army was 
issued, owing to the Magyar attempt at the restoration 
of the Habsburgs. The Czech crown fell to 6 Swiss 
centimes. It recovered from, this decline in the spring 
of 1922, and in the summer of that year almost trebled 
its value, rising to about 19 Swiss centimes. The 
general increase of prices and incomes was stopped, and 
the finances of the State became normalized. 

The second great task consisted in obtaining suf- 
ficiently large credits to give the Government time to 
put the finances of the State in order. We have 
already explained the difficulties in obtaining credits. 


GOVERNMENT FINANCE 195 


In order to minimize these difficulties the Government 
consented to accept war loan bonds held by Czecho- 
slovak citizens and institutions in part payment of sub- 
scriptions to the new internal loan. It should be men- 
tioned here that, under the peace treaties, Czechoslo- 
vakia was not bound to honor the Austrian war loan 
bonds, but in order to prevent the collapse of some 
financial institutions, corporations, and individuals, the 
Government had decided to honor the bonds up to 75 
per cent of their nominal value, but only if the bonds 
were offered as part of a subscription to the new 
internal loan. Consequently, all those who had war 
loan bonds of a nominal value of 100 crowns and lent 
to the State 75 crowns received two State bonds of a 
nominal value of 75 Czechoslovak crowns each, one 
replacing the war loan bond and the other representing 
the cash subscription. Up to the time of writing the 
new loan has brought in approximately 500 million 
Czechoslovak crowns and has greatly helped the State 
to carry on until its finances could be ‘put in order. 
The budget for the financial year 1921 amounting to 
approximately 18 billion Czechoslovak crowns of rev- 
enues and 18 billion crowns of expenditure was already 
balanced. This was accomplished by extensive savings 
and, above all, by the passage of a financial law which 
limited the disbursements of the various ministries and 
made all expenditure in excess of the budget estimates 
conditional on the consent of the Parliament. On the 
other hand, the postal fees and railroad rates were 
readjusted so as to make the railroads paying estab- 
lishments. here was also some increase in taxes, 
especially in the tax on luxuries and coal. The estimates 


196 CZECHOSLOVAKIA 


of expenditure in the budget for 1921 were not ex- 
ceeded, although the Government employees received 
bonuses which were not provided for in the budget. 

But the task of the financial administration was not 
ended, for not only the finances of the State but also 
the finances of the autonomous communes and the 
provinces were in difficulties. Here also the crisis was 
relieved partly by a law providing for a control of 
communal finances in order to bring about the desired 
economies, and partly by a 2 per cent increase in the 
sales tax, which was allocated to the communes. These 
measures did not, of course, remove all the difficulties, 
but progress was made in that direction. 

In the Budget for 1922, the revenue amounted to 
18,884 million and the expenditure to 19,872 million 
crowns, leaving a deficit of 988 million crowns. The 
deficit was caused mainly by the inclusion of the un- 
covered deficits of the provincial administrations in 
the State expenditure. The State finances suffered 
somewhat in consequence of the rapid rise of the 
Czechoslovak crown in the second half of 1922 which 
will be considered later on. 

In 1921 the flour subsidy was abolished, for at that 
time the profits made on the exports of sugar had 
nearly disappeared on account of the general decline 
of the price of sugar in the world markets, and there 
were no internal financial means to continue the sub- 
sidy. Gradually all the remaining central offices for 
the distribution of food were liquidated and freedom of 
internal trade was reestablished. 

In the budget for 1923 the revenue was estimated 
at 18,812 million, the expenditure at 19,377 mil- 


GOVERNMENT FINANCE 


lion, leaving a deficit of 565 million crowns. 


197 
The 


expenditures of the public administration were covered 
by the ordinary revenues to the proportion of 96 per 


cent. 


The budget estimates for 1924 are as follows: 


President of the Republic..... 
Chancellery of the President.. 
National Assembly ........... 
Supreme Assembly 
Supreme Bd. Financial Control 
Contributions to communal and 

provincial administrations... 
Pha tleph tote tJ a} Antsts sumeae hie ume ae ep 
Assistance to orphans, widows, 


oe eo eee eevee 


(In Czechoslovak crowns) 


Expenditure 
3,000,000 
13,674,618 
39,361,443 
4,599,619 
3,934,425 


798,257,000 
1,986,1 31,074 


ELC TENSIONS) ela cle eka ase 610,050,360 
Ministerial Council ........... 157,496,892 
Ministry of Foreign Affairs .. 173,234,118 
Ministry of National Defence.. 2,299,973,630 
Ministry of the Interior...... » 599,750,432 
Ministry of Education ....... 845,921,810 
Ministry ore imancess.. ace. fs 1,641,080,782 
Ministry of Commerce ....... 38,712,753 
Ministry of Posts and Tele- 

TATOO eMart cela ear cc's oicieaiore'e 853,292,770 
Ministry of Railways)... oss... 4,174,517,870 
Ministry of Agriculture ...... 655,300,342 
Ministry cole hUstice |). 2% ass sess 279,881,952 
Ministry of Public Works .... 739,024,793 
Ministry of Social Welfare.... 786,962,927 
Minisiry: OF Supplies... seee: s 18,764,334 
Ministry of Public Health..... 159,142,893 
Ministry of Unification ....... 1,844,068 
Commission on Repatriation... 110,000,000 

otal sy ane eee ee +++ 16,993,976,905 


Revenue 


1,790,542 
204,000 
24,000 


87,509,000 
153,102,750 
30,030,000 
172,519,500 
7,201,200 
14,193,878 
9,077,840,040 
48,989,100 


1,089,313,000 
4,603,237,530 
526,476,371 
21,214,733 
492,541,267 
8,700,300 
240,000 
56,166,230 


16,391,293,591 


It will be observed that in the budget estimates for 
1924 the expenditure has been reduced to 16,944 mil- 


198 CZECHOSLOVAKIA 


lion crowns. This is a reduction of 2,383 million as 
compared with the preceding year. The special in- 
vestment budget for the construction of productive 
public works, such as electric power stations, etc., has 
been reduced 770 million. The total savings as 
compared with the preceding year amount to 4,647 mil- 
lions. The State revenues have decreased to 16,391 
millions, the resulting deficit being 603 million, or 
44 million greater than in the previous year. The 
difficulties in the management of the State finances 
have been caused by the reduction in the coal tax, 
but the Ministry expects that a reduction in the costs 
of production will bring about a boom in industry 
and trade. The expected reductions in the estimated 
revenue will be made up by a corresponding adjustment 
of taxation for 1924. 

In the second half of 1922 the Czechoslovak crown 
rose to 19 Swiss centimes, declining later to about 
16.75 Swiss centimes, a rate at which it has now been 
practically stablized ever since January, 1923. The cur- 
rencies of the neighboring States, especially that of 
Germany, have, on the other hand, sustained a con- 
tinual decline, so that the mark has been practically 
abandoned as a means of savings, while the Czecho- 
slovak crown has been sought as a means of savings 
on account of its rather increasing value. Asa result of 
the rapid rise of the Czechoslovak crown an industrial 
crisis and unemployment set in. In view of this fact 
the writer does not favor monetary deflation, because 
it has unfortunate consequences for industrial activity 
and prosperity. Stabilization of the currency is, in 
the opinion of the writer, the best financial policy to 
be pursued. 


GOVERNMENT FINANCE 199 


The public debt of Czechoslovakia contracted in 
Czechoslovak crowns is estimated at approximately 
22 billion. The debt includes nearly 7 billion Czecho- 
slovak crowns of liabilities incurred in regulating 
the currency and in taking over the checking 
accounts of the Austro-Hungarian Bank, and are as 
follows: 


1, Checking accounts of the Austro-Hungarian 


DT Me ee ee is ie eee Cut Sel ite 6,526,855,144.31 
Deeatate moan ke TOteniOale ce eon tas kya ear ees ae 390,579,000.00 
3. Scrip taken over from the Austro-Hungarian 

SCM ee vite oe eee ee ewe eas 6,971,302,114.31 

The internal debts of Czechoslovakia are as follows: 
National viberty.\Loan)'4: per Cents si. ccc eee te os 500,000,000 
Beper, Contas TEASULyTN OLES) s v..5 sola elbe bis sigh dale 1,048,054,000 
Beas OPTe CON UL rem iUiner sOa ll taiue ee ialsccie einlo eres 540,866,400 
RANetECeNL mM ureaSury LV OLES 4 acti ajoins sistas ani otajics' os 915,990,000 
Treasury Bonds (issued in exchange for 6 per 

Senter Treasury, wNOLES) ocoe cael ohaoe hl ioe 1,530,185,000 
6 per cent Treasury Notes (to cover war expendi- 

PUES IMO Vata) reunion or Aseria te ttc tccaty ne ees 677,300,000 
Boldwiculotery ..oanwe per cent... oi Seek 60,175,047 
Public Services Investment Loan (railways, posts 

ADU MECIEO ONES Valrico sar ee ace a iaale ts eee a 589,000,000 
Fourth State Loan, 3% to 6 per cent............ 3,401,707,736 
Currency Loan (to purchase bullion as cover for 

NOLES.) Bata ers CONE hi welt vies ewe PE ee 250,000,000 
Supplementary credit (for purchase of military 

SOUIMEH LSA NELECON ta is sass ita ales a 322,000,000 
ELOUT. LOAN DET ECENC dey Shia dat pie eats att 3,400,000,000 
Investment Loan for electrification, 6 per cent... 10,000,000 
6 per cents LICASury. NOLES is bcs bce eee ataie ess 1,830,995,500 

15,082,274,583 


The external indebtedness of Czechoslovakia, taking 
the Czechoslovak crown at 3 cents, is estimated as 
follows: 


200 CZECHOSLOVAKIA 


f.british "Governments creditson va eos ate eee 211,575,472 
arCzechoslovakiotate, Oath ce an ein eo one 1,033,760,604 

3. French Government Credits (for the purchase 
Of military equipment) soso aes a he tees 229,000,000 
for. the: purchase of horses.c 0 s.ien.2 vss ore 36,774,784 

for the maintenance of Czechoslovak Army 
LUNits ADIGA pees chee tee ea es Tecan a eeenets 77,198,728 

4. Italian Government Credit (maintenance of 
Czechoslovak Army units abroad).......... 293,400,000 


5. United States of America, credits for food, 

equipment and maintenance of army in 

RUBIA Mea teoeee ers a el Ure ohn wat aen et ahs uaere ree a Re aR 2,917,434,688 
6. International (Nansen’s) Committee’s Credit 

(for repatriation of prisoners of war in Russia) 12,876,000 
7. Revolution Loan (for maintenance of army 


Nits AUTOR )avcuutau sie cresc kts e Ktele re etaters ee ecsten ee 1,145,000 
POtALH ays Yar ane eon ee a eet te ateter ae aie ae 4,813,165,276 


Public debts arising from the Peace Treaties are 
estimated as follows: 


1. Czechoslovak share of Austro-Hungarian pre- 

Wat, debtsp/ approximately. sc). cites ue eee 5,000,000,000 
2. Reparation payments under the Treaty of 

St. Germain, maximum 750,000,000 gold 

francs; -ApproximiatelVieueve ess eeetee ane 10,000,000,000 


LOCAL Cio ws oer a tea atic wa trate aan maeny 15,000,000,000 


In addition, a contingent liability has been incurred 
by the State through the guaranty of 20 per cent of 
the international loan to Austria to which Czechoslo- 
vakia is a party. 

It will be observed, and it is generally admitted, 
that the Czechoslovak financial policy has been, on the 
whole, a wise one. The soundness of Czechoslovak 
State finances proves this beyond doubt, and it is no 
exaggeration to say that if a like policy had been pur- 
sued by other European States the financial reconstruc- 
tion of Europe would have made a better progress. 


XV 
LABOR LEGISLATION 


Dr. Eucene STERN, Division CHIEF IN THE MINISTRY OF 
SoclAL WELFARE 


Czechoslovakia has taken over from Austria-Hun- 
gary the regulations of the conditions of labor, espe- 
cially those affecting the labor contract, as they were 
contained in the civil code. It will be the task of the 
new State to revise these regulations and to bring them 
up to date. In the first five years of its existence, 
Czechoslovakia has enacted a number of laws which 
have placed the Republic, in the matter of social re- 
form, among the most advanced States. 

The Czech nation has always had a tendency toward 
social reforms. This tendency can be observed in the 
Hussite movement and in the Church of the Bohemian 
Brethren as well as in the national renaissance in the 
beginning of the nineteenth century. In the course 
of the nineteenth century the Czechoslovak territories 
were rapidly industrialized; they became the workshop 
of the former Habsburg Monarchy, but the owners 
of the industrial plants, mines, iron mills, and landed 
estates were members of the Austro-German nobility 
and bourgeoisie, while the workmen were Czechs and 
Slovaks. Independent Czech industries and commer- 
cial houses in which not only the workmen but also 

201 


202 CZECHOSLOVAKIA 


the owners were Czechs were established only in the 
latter part of the last century. The headquarters of 
the great industrial concerns and of the great banks 
which had their mines, furnaces, and factories in the 
present Czechoslovak territories were either in Vienna 
or in Budapest; and in the social struggles the former 
Austrian and Hungarian Governments were always 
hostile to the Czech workmen. Thus in both Austria 
and Hungary the racial question was at the same time 
a social question also. The Czech workmen in the 
Germanized districts of Bohemia had to build their 
own schools. The connection between the racial and 
the social question was often emphasized in Professor 
Masaryk’s lectures at the Prague University. He 
pointed out that the Czech question was above all a 
social question. Thus it was quite natural that in the 
newly established State the social question was one of 
the main preoccupations of the Government and found 
expression in the steadily expanding social legislation. 

Other influences affecting the social legislation are 
to be found in the repercussions of the Russian social 
revolution and of the collapse of militarist Germany, 
as well as in the action of the labor members of the 
Government. Owing to the advanced standard of pop- 
ular culture, social legislation in Czechoslovakia has 
proceeded in a peaceful way without any violent up- 
heavals. 

It is impossible to give in this short outline a de- 
tailed account of the social legislation; the writer can 
point out only some of its chief principles. 

One of the long-standing demands of the Czech 
workmen was the eight-hour working day. In 1900 it 


LABOR LEGISLATION 203 


was the present President of the Czechoslovak Repub- 
lic, T. G. Masaryk, who emphasized the advantages of 
the eight-hour working day at a meeting of the miners 
at Kladno. Before the war the eight-hour working 
day had been established in some of the key industries 
and in the mines; after the war it was legally estab- 
lished in most of the European countries. In Czecho- 
slovakia the law establishing the eight-hour day was 
passed on December Ig, 1918. 

This law, dictated by the desire to put an end to the 
war sufferings, marks a new era in Czechoslovakia’s 
social legislation. It includes also regulations of night 
work and the protection of young workmen and work- 
ing women. The passage of the law was unanimous, 
both the representatives of labor and the representa- 
tives of industrial capital and agriculture recog- 
nizing its necessity. 

The main features of the Czechoslovak law provid- 
ing for an eight-hour working day are the following: 

(a) The maximum working day, under the former 
Austrian laws, was I1 hours in factories, with one 
hour allowed for overtime. In mines the working day 
was limited to 9 hours, with 3 hours for eventual 
overtime. In agriculture and in commercial estab- 
lishments there was no limitation of working hours 
whatever. 

The new Czechoslovak law limits the working hours 
to 8 in a day, or 48 in a week, or 192 hours in four 
weeks, for all categories of labor. The arrangement 
of the hours is to be determined by agreement be- 
tween the employers and the employees. In cases of 
seasonal work, and especially in agriculture and in the 


204 CZECHOSLOVAKIA 


building industry, overtime is allowed on application 
to the boards of labor. Overtime is to be specially 
paid for in accordance with agreements made between 
the employers and employees, and must not exceed two 
hours a day in not more than 20 weeks, or 240 hours 
in a year. 

(b) Pauses in the working hours and Sunday rest. 

After five hours of continuous work, the employees 
are entitled to a rest of at least one-quarter of an 
hour. It is provided further that once a week the 
employees must have an uninterrupted rest of at least 
32 hours. In establishments in which work can be 
stopped temporarily, such weekly rest should fall on 
Sunday; for men engaged in processes requiring con- 
tinuous operation the weekly rest should be so ar- 
ranged among the employees as to have every third 
weekly rest fall on Sunday. 

For women employed in factories, the Sunday rest 
starts on Saturday at 2 o’clock p. m. Exceptions are 
made only in such cases where the assistance of women 
is necessary in continuous work. Persons employed 
in housework are entitled to a weekly rest of at least 
18 hours (preferably on Sunday). 

(c) Night work. Work at night, that is, from 10 
p. m. to 5 a. m., is allowed only in such establishments 
or public services in which continuous work is neces- 
sary. In such work only men over 18 years of age 
are to be employed. The employment of women in 
night work is not permitted, but may be allowed in 
exceptional cases, especially when the work is in the 
general interest of the public, such as work in the 
hospitals. In such cases the women employed must be 
over 18 years of age. House servants must not be 


LABOR LEGISLATION 205 


given heavy work in the hours from 9 p. m. to 5 a. m.,, 
except in emergencies, such as illness in the employ- 
er’s family, etc. 

(d) Protection of children and young persons is 
partially provided for in the measures regulating 
night work. It is, however, specially stated in the 
law that children below 14 years of age must not be 
employed in enterprises organized for profit, such as 
factories, etc. In housework and agriculture children 
over ten years of age may be employed in light work 
and services only. 

The law prohibits the employment of young men 
up to 16 years of age and young women up to 18 
years of age in heavy work which might be detrimental 
to their health or their physical development. In.the 
mines only men over 16 years may be employed. On 
the whole, the eight-hour day signifies a stabilization 
of labor conditions and the end of labor conflicts and 
strikes for shorter hours, abolition of night work, 
protection of children, etc. 


PROTECTION OF YOUNG WORKMEN 

Of great importance is the law of June 17, 1920, reg- 
ulating the work in the home industries where the 
employee takes his work home and delivers the fin- 
ished goods to his employer. This kind of work is 
known the world over as the sweating system. At- 
tempts to regulate the working hours in the home 
industries were made in former Austria, but without 
any practical results. The importance of this question 
for Czechoslovakia may be judged by the fact. that in 
1898 there were in the Czech territories alone 226,000 
workmen employed in the home industries; including 


206 CZECHOSLOVAKIA, 


Slovakia and Carpathian Ruthenia, their number may 
be estimated at half a million at present. 

The law provides for the establishment of district 
and central committees dealing with the various 
branches of the home industry. Each committee has 
nine members who are appointed by the Minister of 
Social Welfare. One-third of the members are 
selected from among the employers, another third from 
among the employees, and the rest from neutral ex- 
perts. These committees act as mediators in all 
conflicts between the employers and the employees. The 
committee usually seeks to effect a compromise, and 
if this is not possible decides the conflict on its own 
initiative. The decison is binding on both sides, unless 
they appeal to the central committee. 

The central committees act as appellate bodies and 
review the decisions of the district committees. They 
issue rules regulating wages and working condi- 
tions of the employees in the home industries. The 
rules are obligatory on all those employed in the home 
industries as well as on the employers who have to 
comply with the conditions prescribed. 

The law regulating the working conditions in the 
home industries is one of the first Czechslovak laws 
which are not confined to the regulation of working 
hours and the protection of the workmen’s health, but 
provide also for a minimum wage. 


DEMOCRATIZATION OF INDUSTRIAL ESTABLISHMENTS 


After the war the Czechoslovak workmen and their 
trade unions did not limit their demands to the regu- 
lation of the working hours and wages, but demanded 
also the right to be consulted in regard to the hiring 


LABOR LEGISLATION 207 


and dismissal of workmen, and a share in the man- 
agement and profits of the establishment. This de- 
mand has had a profound effect on the Czechoslovak 
social policy. Attempts to satisfy this demand were 
first made with a partial success in the mining 
industry. 

Under the law of February 25, 1920, district and 
local miners’ councils have been established. The 
councils are charged with the duty to cooperate in the 
enforcement of the laws providing for the protection 
of workmen, to supervise the observance of the wage 
contracts, to cooperate in the maintenance of discipline 
in the mines, to act as mediators in conflicts between 
the employers and employees, and to cooperate in the 
management of welfare institutions for the employees. 
The councils are to be consulted in regard to the dis- 
charge of workmen. They are authorized to submit 
plans for improvement of the management, and may 
examine the annual balance sheets of the concern. The 
miners” council, however, may not interfere directly 
with the management of the concern, for its function 
is mainly advisory. 

Local miners’ councils are to be elected in all mining 
establishments employing at least 20 workmen. The 
council is elected by all employees who are citizens of 
the Republic, over 18 years of age, and have worked 
for the concern at least three months in a period of 
two years. Eligible are those who have worked for 
the establishment at least six months in three years in 
the mines, are over 24 years of age, and are citizens 
of the Republic. The management has one technical 
and one commercial representative on the council who 
act as advisers. The meetings of the council take 


208 CZECHOSLOVAKIA 


place after the working hours, and the employers may 
be present. 

District councils are elected by the local miners’ 
councils for a period of two years. Their duty is to 
direct the local councils in the carrying out of the 
laws regulating the labor conditions, to act as medi- 
ators in conflicts between the local miners’ councils 
and the management, to cooperate in the issuing of 
labor regulations for the entire mining district, in the 
negotiation of wage contracts, and in the division of 
the shares of the profits granted by the management to 
the local council for the benefit of the employees. 

The law providing for the establishment of local 
and district miners’ councils has been, supplemented by 
a law providing for a share of the employees in the 
management and in the profits of the mines. Every 
mining concern is bound by law to have proper book- 
keeping, and to issue an annual balance sheet showing 
profits or losses. The employees are entitled to a share 
of 10 per cent of the profits, which is not to be divided 
among them, however, but to be employed for the 
general good of the workers. All proceeds received by 
the local councils go to the district council, which uses 
them for the support of educational, humanitarian, and 
other institutions beneficial to the miners. 

It was only to be expected that after the establish- 
ment of the local and district miners’ councils the 
workmen in other industries would seek to have such 
councils established also, especially as such councils had 
already been established in both Austria and Germany. 
The result of this demand was the passage of the law 
of August I2, 1921, providing for such factory coun- 
cils. 


LABOR LEGISLATION 209 


These factory councils, however, have nothing in 
common with those existing in Russia (Soviets), for 
they are mainly advisory bodies not authorized to in- 
terfere in the management of the factories. In accord- 
ance with the law a factory council is, to be elected in 
all establishments having over 30 permanent employees. 
The rights and duties of these councils are practically 
the same as those of the miners’ councils. 

The main purpose of the councils, however, is to 
bring the workmen in touch with the management; 
hence the councils are authorized by the law to submit 
plans for better, or more economical, or more practical 
management, and the employer is bound to consult them 
about the submitted plans. The employer is also ex- 
pected to give the council an account of the financial 
condition and the prospects of the concern, and in 
establishments having at least 300 employees the coun- 
cil is entitled to demand a copy of the annual balance 
sheet. Conflicts between the council and the manage- 
ment are decided by a special committee, with the dis- 
trict judge acting as chairman. 

Elections to these councils are governed by regula- 
tions similar to those provided for miners’ councils. 
The council is elected for a period of one year, and 
all those who have been employed in the concern for 
at least one year are eligible. 

Such are the main provisions of this law which 
marks a new era of democratic social policy, and intro- 
duces a new regulation of the wage system. In this 
peaceful way of social reforms, Czechoslovakia hopes 
to avoid violent social upheavals and to bring about 
social justice and peace. 


XVI 


SOCIAL WELFARE POLICY, AS SHOWN IN THE 
ASSISTANCE’ TO THE UNEMPLOYED, ‘THE 
CARE FOR THE WAR SUFFERERS, 

AND SOCIAL INSURANCE 


Dr. JAN BraAzsec, COUNCILLOR OF THE MINISTRY OF 
SoclAL WELFARE 


The independent State of Czechoslovakia was re- 
established at a time when the war fronts of the Central 
Powers had collapsed. The collapse brought about 
serious economic and social changes. It released a large 
mass of soldiers for whom employment could not be 
found at once, as the industries which had been work- 
ing to supply the needs of the army now had to 
abandon that work and the shortage of raw materials 
made an early resumption of work for the needs of 
peace impossible. 

There were large numbers of sick and wounded sol- 
diers in the hospitals and out of them, and large 
numbers of widows and orphaned children of soldiers 
who had fallen in battle or died of disease, or had 
disappeared. 

These conditions determined the first social welfare 
measures of the Government as regards aid from the 
funds of the State. As early at December Io, 1918, 
a law granting Government aid to the unemployed 

210 


SOCIAL WELFARE POLICY 211 


was passed by the National Assembly; a general law 
providing assistance to war sufferers was passed April 
8, 1919. Social insurance is the third factor in the 
aid to persons lacking economic independence. 

In this article the historical development of these 
three factors in the Czechoslovak Republic will be 
briefly sketched in this order: 

1. Government aid to the unemployed. 

2. Care for the war sufferers. 

3. Social insurance. 


I. Amp To THE UNEMPLOYED 


Under the law of December I0, 1918, aid was ex- 
tended to demobilized soldiers and to persons who had 
been employed during the war and had to be insured 
against sickness (chiefly persons employed in industry 
and commerce). Benefits were paid at the rate of 4 
crowns a day, occasionally at the sick-benefit rate (not 
exceeding 6 crowns a day) ; an additional payment of 
I crown a day was made for each dependent member 
of the household. The aggregate payment, including 
the family bonus, was not to exceed I0 crowns a day. 
The authority to grant benefits was vested in the 
so-called Demobilization Committees. Each county 
had its own Committee composed of an equal number 
of employers and employees. ‘The applicant had to 
produce proof that he had made an unsuccessful appli- 
cation for work at a public employment bureau; he 
was bound to renew such application twice a week and 
to accept any suitable work assigned to him. 

As the benefits thus granted were not directly 
productive economically, it was provided later by the 


212 CZECHOSLOVAKIA, 


law of October 17, 1919, that the county authorities 
might order the municipal corporations, the communes 
in particular, to undertake public works as an emer- 
gency measure to give work to the unemployed. The 
State would refund to the contractor two-thirds of the 
wages of such persons, not to exceed 6 crowns a day 
per worker. The power to allow benefits was trans- 
ferred from the Demobilization Committees to the 
county authorities. 

Refunds to employers represent a third method of 
aid to the unemployed. In order to prevent the dis- 
missal of workers when production is stagnant the 
State refunds a certain proportion of the wages paid 
(say 70 per cent) to those employers who keep their 
workers employed. 

The present legal status of the unemployed is based 
on the law of August I2, 1921, which provides a 
benefit of 8 crowns a day, increasing to 10 crowns 
in larger towns, and family bonuses of 2 crowns for 
the wife and 1 crown for each child under 14, the 
total payment not to exceed 16 crowns or, in larger 
towns, 18 crowns a day. The benefits are payable 
for six months, in exceptional cases for a year. It 
should be noted that workers idle as the result of a 
strike or lockout are not entitled to benefits, and that, 
in cases of reciprocity, benefits are paid also to citi- 
zens of other States. 

The extent of Government aid to the unemployed 
may be judged from these figures: In I919 more 
than 250 million crowns was paid out in benefits; in 
1921 only 80 million crowns. 

The present system of payments is to continue in 


SOCIAL WELFARE POLICY 213 


force until the end of 1922 at the latest. It will then 
be succeeded by the Ghent system under the law of 
July 19, 1921. The unemployment doles will then 
be paid through labor organizations, the State con- 
tributing, in principle, only as much as those organi- 
zations themselves. 


II. CARE FOR THE WAR SUFFERERS 


From the very beginning the Czechoslovak Govern- 
ment has recognized the principle that a systematic 
care for the war sufferers can only be undertaken by 
the State itself even if the private assistance of in- 
dividuals and charitable organizations is not excluded. 

The law of April 8, 1919, declared the chief obli- 
gations of the State in its care for the war invalids to 
be the following: To continue the medical and surgi- 
cal treatment of the sick or wounded soldiers until 
their complete recovery; to provide them with pros- 
theses and orthopedic apparatus when necessary; to 
educate the invalids for a suitable trade or calling 
according to their personal qualifications; to place 
them in a situation where they may successfully pur- 
sue their chosen trade or calling; to aid them financially 
in case of need and grant them regular allotments of 
money; to aid the dependent survivors of dead or 
missing soldiers. 

As the first step the county authorities carried out 
a census of war invalids residing in the country (ex- 
cepting salaried men and non-commissioned officers 
who, as professional soldiers, are under the juridic- 
tion and care of the Ministry of National’ Defense). 
A like census of war invalids resident abroad was 


214 CZECHOSLOVAKIA 


carried out by representatives of the Czechoslovak 
Government in foreign countries. The proportionate 
reduction of the invalids’ earning capacity was then 
ascertained through examinations by special mixed 
commissions. 

Financial aid was granted to invalids for the pur- 
chase of machines and tools needed in their chosen 
trades, for the equipment of workshops and, in ex- 
ceptional cases, also, for the furnishing of homes. 
The blind were provided with small homesteads—a 
home with a garden and a field where the invalid 
might live and partly earn his living. Some of the 
blind were placed in the tobacco stores as agents of 
the tobacco monopoly. 

As the conditions in many trades are He ae for 
cooperative undertakings the Government aided the 
organization of cooperative societies of invalids for 
the manufacture of footwear, orthopedic apparatus, 
clothing, saddlery goods, etc. The societies would 
receive subsidies or non-interest bearing loans and 
would be aided to obtain raw materials and secure a 
share of Government orders. 

After special provincial veterans’ bureaus had been 
established at Prague (for Bohemia), Brno (for 
Moravia and Silesia), and Bratislava (for Slovakia 
and Carpathian Russia), the law of February 20, 
1920, was passed providing for regular allotments of 
money to war sufferers. The basic allotments were 
moderate. An invalid, for example, whose earning 
capacity had been reduced at least 85 per cent would 
receive 1,800 crowns; a widow, 600 crowns; orphans, 
300 crowns for the first child and 252 crowns for 


SOCTAL, WELFARE POLICY 215 


each of the others; parents, 300 crowns. The allot- 
ment would thus suffice for the absolute necessaries 
only, the veteran being required, so far as able, to 
obtain additional means by his own work. From this 
point of view all persons having an independent an- 
nual income of more than 4,000 crowns or earning 
more than 8,000 crowns by working for others were 
excluded from the benefits of the law, and allotments 
were to be granted only to invalids whose earning 
capacity had been reduced at least 20 per cent. 

In the case of sickness the invalids, under certain 
conditions, are to receive medical assistance and medi- 
cines. When an invalid is being treated at a sana- 
torium at Government expense one-half of his allot- 
ment is paid to his family. The allotment may, under 
certain conditions, be capitalized in part or in full and 
converted into a lump sum so that the invalid may 
obtain sufficient means to engage in trade or business. 

Widows unable to work and widows over 55 years 
of age were to receive an additional benefit of 120 
crowns a year; in case of remarriage they were to 
receive a lump sum. Orphans were to receive allot- 
ments until they reached the 16th year of age. The 
allotments were increased 50 per cent to orphans who 
had lost both parents or were neglected by their 
mother. 

By the law of January 25, 1922, the basic allot- 
ment to invalids whose earning capacity had been re- 
duced at least 55 per cent was fixed at 2,400 crowns 
representing an increase of 600 crowns in the allot- 
ment to a total invalid. The minimum income exclud- 
ing the invalid from the benefits of the law was raised 


216 CZECHOSLOVAKIA 


to 6,000 crowns; the allotment to widows whose 
earning capacity had been reduced at least 50 per cent 
or who had to provide for at least two minor children 
was increased to 900 crowns. 

The allotment to orphans was increased to 400 
crowns a year and was to be paid to them until they 
completed their 18th year. The allotment to parents 
was likewise raised to 400 crowns, and the regula- 
tions concerning medical inspection and the granting 
of allotments were revised. 

An additional 50 per cent cost-of-living bonus is 
at present paid with all allotments. 

The extent of Government aid to war sufferers may 
best be judged from the fact that in the Czechoslovak 
Republic there are now about 170,000 war invalids, 
110,000 widows, 180,000 orphans and 65,000 fathers 
and mothers of soldiers who have fallen in battle, 
died of disease, or are missing. In the budget for 
1922 the expenditure for aid to the war sufferers is 
estimated at 500 million crowns. 


III. Socrat INSURANCE 


Social insurance, in principle, means the compulsory 
insurance of persons economically dependent against 
certain harmful social phenomena, particularly against 
sickness, injury, invalidity, and old age. 

At the time the independent State of Czechoslovakia 
was reestablished social insurance in the country was 
represented chiefly by the insurance of industrial work- 
ers against sickness and injury, the pension insurance 
of the higher classes of private salaried employees, 
and the inadequate insurance of miners. 


SOCIAL WELFARE POLICY 217 


Attempts had been made in the old Austrian Em- 
pire to work out a complete system of workmen’s in- 
surance by the institution of insurance against invalidity 
and old age and later of a general social insurance, 
that is, a system that would protect not only dependent 
persons working for others but also certain classes 
of persons working independently, such as small busi- 
ness men and small farmers. 

It was the first task of our State to revise the 
existing elements of social insurance and adapt them to 
the changed conditions, and also to unify the divergent 
legal provisions, for heretofore the old Austrian laws 
were in force in Bohemia, Moravia and Silesia while 
the old Hungarian laws prevailed in Slovakia and 
Carpathian Russia. 

In the department of insurance against sickness the 
law of May 15, 1919, made compulsory the insurance 
of all persons performing labor or service on the basis 
of a contract of labor, service, or apprenticeship, as 
their chief and permanent occupation; all agricultural 
wage workers were thus included in the scope of the 
law. 

The law also simplified the organization of sickness 
insurance by abolishing the small sick-benefit funds 
connected with individual establishments or societies 
and creating strong county funds. 

The law of December 22, 1920, extended the term 
for which sick benefits might be granted to one year, 
at the same time increasing such benefits in accord 
with the readjustment of wage classes with higher 
earnings. 

Women in childbed were allowed sick benefits for 


218 CZECHOSLOVAKIA 


six weeks before and six weeks after childbirth; com- 
pulsory insurance of family members was introduced, 
and the compensation for funeral expenses increased. 

One-half of the insurance premium is to be paid by 
the person insured and one-half by the employer. The 
workers formerly paid two-thirds. 

The maximum wage used as a basis for the calcu- 
lation of benefits in the case of injury was raised to 
6,000 crowns by amendments to the law regulating 
insurance against injury, adopted April 10 and October 
29, 1919, and later to 12,000 crowns by the law of 
August 12, 1921, taking effect retroactively from Jan- 
uary I, 1921. The benefits payable to the injured 
workers or their survivors were supplemented by cost- 
of-living bonuses. The premiums for this class of 
insurance are paid by the employers exclusively. 

The benefits payable by the fraternal funds of the 
miners were increased in a similar way by the law of 
October 29, I919Q. 

An amendment to the pension law adopted february 
5, 1920, effected an increase of pensions through 
reclassification (wage classes up to 9,000 crowns). 
Compulsory pension insurance was extended, among 
other new classes, to the employees of commercial 
houses. The law also introduced preventive medical 
care, and collated the scattered provisions of the 
various acts then in force. 

The pensions were supplemented by cost-of-living 
bonuses for the years 1920-22, the latest enactment 
being dated December 21, 1921. 

The preliminary researches necessary for the work- 
ing out of a complete system of social insurance have 


SOCIAL WELFARE POLICY 219 


been entrusted to a special committee of experts in 
the Ministry of Social Welfare. The committee has 
adopted the following general principles: 

Owing to fiscal reasons social insurance alone is to 
be maintained, a general system of national insurance 
not being feasible. For those same reasons the intro- 
duction of unemployment insurance must be postponed 
for the present and the Ghent system subsituted. In 
addition to the insurance of wage workers a plan is 
to be worked out for the insurance of certain classes 
of independent workers (small business men, small 
farmers). In all branches of social insurance for 
persons working for others the obligation to be in- 
sured shall be determined, so far as possible, by a 
uniform standard. The autonomy of the insurance 
funds is to be emphasized; a restriction of direct elec- 
tions, however, would seem desirable in the interest of 
a stable administration of the funds. An adequate 
control of the funds by the State is likewise desirable. 

No decisions have been made thus far as to the 
method of such Government control, or the quotas to 
be contributed by the insured and by the employers, 
respectively, as the committee awaits the final results 
of the census of February 15, 1921, particularly as 
regards the distribution of the population according 
to age, marital condition, and occupation. 

By the law of December 21, 1921, the amount of 
130 million crowns was appropriated for the purposes 
of social insurance for the period of transition which 
will require substantial contributions on the part of 
the State. | 


XVII 
CHILD WELFARE 


Dr. JAROSLAV JANOvVSKY, SECRETARY IN THE MINISTRY OF 
SOcIAL WELFARE 


The Czechoslovak Republic is one of the succession 
States of the former Austro-Hungarian Monarchy. 
That explains why the organization of child welfare 
institutions in the Republic is substantially a continu- 
ation of the legal status established by the laws for- 
merly in force in Austria-Hungary. In this depart- 
ment of public administration, as in others, the laws 
of former Austria are still largely in force in Bohemia, 
Moravia, and Silesia, while the laws of former Hun- 
gary prevail in Slovakia and Carpathian Russia. A 
comprehensive general law for the protection of chil- 
dren, such as England, France and Belgium have 
enacted, is not to be found among the statutes of 
either Austria or Hungary. Provisions for the pro- 
tection of children in our country have been incorpo- 
rated gradually in the laws regulating the various 
departments of public life. The historical develop- 
ment of child welfare policies, and of the policy of 
social welfare in general, can be clearly traced in 
these successive Acts. As the idea gained ground 
that the protection of the destitute or dependent mem- 

220 


CHILD WELFARE 221 


bers of society was not the domain of charity alone 
but a direct duty of the State, the original scanty 
provisions of the family law and the law of guardian- 
ship—the earliest legal measures for the protection 
of children—were gradually supplemented by new en- 
actments. The social protection of children thus passed 
from the confines of private law into various depart- 
ments of public law, as the municipal corporations, 
the communes, and likewise the counties, the Provinces, 
and lastly the State itself, were now charged with the 
duty at public expense to maintain and educate chil- 
dren dependent on public aid. 

From this point of view it may be said that the 
foundation for the public care of children in Bohemia, 
Moravia, and Silesia, the historic countries of the 
Bohemian State, was laid by the general Civil Code 
of 1811. The code granted to children a legal right 
to demand maintenance and education from their par- 
ents or other relatives, and charged the courts with 
duty to enforce that right and, when necessary, to 
make suitable provisions for the education of the 
children. 

The various provisions of the Civil Code, and, in 
particular, those authorizing the courts to make suit- 
able provisions for neglected children, naturally can 
be carried out only when certain institutions for the 
protection of children have been provided and the 
necessary funds are available. The latter needs have 
been taken care of by a series of laws including the 
general laws for the relief of the poor, the law of 
domicil of 1863 and its amendments of 1896, and 
the provincial Poor Law of Bohemia of 1868. By 


222 CZECHOSLOVAKIA 


these laws the public care of the children is regulated — 
in connection with the public relief of the poor, the 
practical application of the various provisions being 
entrusted to the self-governing administrative bodies, 
that is, the communes, the counties, and the Provinces. 
The counties and the Provinces are to contribute only 
in case the funds of the communes, or the counties, 
respectively, are insufficient for the performance of 
the duties entrusted to them under the Poor Laws. 
Under the Poor Laws of Bohemia the communes are 
bound to provide not only maintenance but also edu- 
cation for the children of the paupers domiciled 
therein; they are the chief factors responsible for the 
welfare of the children. Certain reforms contemplated 
in this connection will be discussed in the concluding 
part of this chapter dealing with poor relief. 
Certain provincial laws regulating various special 
departments of child welfare under the authority of 
the Provinces cannot be noticed at length in this brief 
review. Two of the older laws still in force, which 
deserve a special mention, are the laws relating to work- 
houses and reformatories. These laws make it a 
duty of the several Provinces to establish and maintain 
reformatories and houses of correction for neglected 
children under 18 years of age, particularly for de- 
linquent youths. The definition of neglected children 
as found in these laws is somewhat narrow, however. 
The Czechoslovak Ministry of Social Welfare has, 
therefore, prepared the draft of a law concerning 
protective education in which the educational provisions 
intended to safeguard the morals of the children are 
placed on a much broader and more solid basis. Under 


CHD Wi BAT Te 223 


this bill a neglected minor below 18 years of age may, 
on an order of the judge of probate, receive education 
in a suitable institution or be placed with a private 
family, and the judge may issue such orders with or 
without the consent of the parents or legal representa- 
tives of the neglected children. 

As a companion measure to this bill the Czecho- 
slovak Ministry of Justice is preparing a reform of 
criminal jurisprudence in relation to juvenile delin- 
quents. The criminal responsibility of minors is to 
begin only after they have reached the age of fourteen, 
and protective education or supervision may, in the 
case of youthful offenders, be substituted for punish- 
ment whenever the criminal judge shall deem such 
arrangement proper and sufficient. 

Among the new child welfare laws which have been 
enacted since the organization of the Czechoslovak 
Ministry of Social Welfare special mention should be 
made of the law regulating child labor in connection 
with the general protection of wageworkers, and the 
law of June 30, 1919, for the protection of illegiti- 
mate children and children under the care of strangers. 
By the latter law public supervision has been extended 
to all children below 14 years of age living outside of 
their own family, and all illegitimate children. 

An intensive development of child welfare legisla- 
tion is to be expected when the public administration 
has been reorganized in accordance with the provisions 
of the Czechoslovak Constitution. The territory of 
the State is to be divided into 21 administrative dis- 
tricts, each of which will be sufficiently equipped, 
both financially. and administratively, to perform its 


224 CZECHOSLOVAKIA 


social welfare duties. The districts will, in case of 
need, receive subsidies from the State Treasury. Such 
is to be the general solution of the question of funds 
which often determines the success or failure of all 
social welfare laws. 

The reorganization of the public administration in 
Czechoslovakia will make possible the fulfilment of 
another condition on which the success of child welfare 
institutions and laws may depend—the unification 
of legal and administrative procedure. In Slovakia 
and Carpathian Russia where the laws of former Hun- 
gary are in force the organization of the public care 
of children is somewhat different. In those Provinces 
the judicial supervision in matters of guardianship 
and tutelage has been entrusted to administrative 
organs, the orphans’ tribunals, so-called, consisting of 
both official and lay members. The organization of 
poor relief is substantially the same as in the Bohemian 
countries; the communes may demand the aid of the 
larger administrative units (counties) in case their 
own funds are insufficient to assist the needy. In 
those territories children may be placed in State insti- 
tutions or with private families, under the laws VIII 
and XXI of the year 1901. 

It will be seen from the above that the Czechoslovak 
Administration considers it as its first duty to corre- 
late the legal provisions for the protection of chil- 
dren, now scattered among the various departments 
of public and private law, and gradually to supplement 
them with new laws so as to place the public care 
of the children on a solid legal basis. At the same 
time, however, the Administration intends to conserve 


CHILD WELFARE 225 


and develop the organization of private charities. In 
opposition to the idea of an exclusive State care of 
the children (a State monopoly of child welfare, so to 
speak) the Government has accepted the view that a 
rational care of the children requires the cooperation 
of official and voluntary agencies. With that purpose 
in view the Government has reorganized the existing 
charitable corporations which have reached a high 
degree of development (particularly the so-called 
provincial and county Child Welfare Commissions) 
so that they now embrace all institutions of this kind 
within their territorial jurisdiction. These corpo- 
rations now act as advisers to public officials and 
occasionally assist in the execution of official decrees. 


RELIEF OF THE PooR 


The public relief of the poor in Czechoslovakia is 
based on the (imperial) law of domicil of 1863, as 
amended in 1896, and the provincial Poor Law of 
1868 for Bohemia. Under these laws the communes 
are charged with the duty to maintain the local poor. 
It is a characteristic principle of the poor laws of 
Czechoslovakia that the claim for relief can be asserted 
against the community of the pauper’s domicil only. 
The commune is accordingly bound, in principle, to 
support only those paupers who: (1) are domiciled 
therein; and (2) have no legal claim for maintenance 
against other persons and are not supported by a 
charitable society or institution; and (3) are unable 
to earn a living but will accept such employment as 
their home commune may offer them. 

The law recognizes the following forms of poor 


226 CZECHOSLOVAKIA 


relief (a) the maintenance of persons unable to work; 
(b) the care of the sick; (c) the payment of funeral 
expenses; (d) the maintenance and education of chil- 
dren. The details of the organization of poor relief 
in the commune as well as the administration of the 
funds set aside for that purpose are left by the law 
to the discretion of the autonomous communal boards. 
Where the funds of the commune are insufficient the 
higher units of the public administration, the coun- 
ties or the Province are to aid. 

It is natural that after fifty years of operation the 
system of public relief of the poor in Czechoslovakia 
is in need of some reforms. It should be noted that 
the poor laws now in force were the result of social 
and economic conditions much more simple than those 
since produced by the rapid march of industrialization 
which has compelled a large majority of the citizens 
to earn their living outside the limits of the communes 
of their domicil. As a result the burden of poor relief 
is very unevenly distributed among the various com- 
munes. Thus the small communes in the less fertile 
regions where a large majority of the inhabitants can 
not make a living are much more burdened than others 
when they have to take care of their citizens who have 
emigrated to the industrial centers, or to maintain 
their children who may be total strangers to the resi- 
dents. To remedy this inequality it is provided by 
the amendment of I919 to the Communal Code that 
the communes are to be relieved of those burdensome 
duties, and the obligation to maintain the poor is to 
be placed on the higher administrative units or on the 
State. 


XVIII 


THE HOUSING QUESTION 


Dr. Hynek Kusista, Division CHIEF IN THE MINISTRY OF 
SociAL WELFARE 


In the Czechoslovak Republic legislation dealing with 
the housing question is based on the housing laws of 
former Austria. In the Empire the State’s interest 
in housing was chiefly fiscal, as evidenced by the 
high tax on rents. The first law designed expressly 
to improve the housing conditions—but only those of 
laborers—was the law of 1892 concerning sanitary and 
low-priced dwellings for workmen which was enacted 
for ten years, and re-enacted in 1902 for twenty years 
more. ‘The first and only law of Austria which pro- 
vided financial assistance to the builders of dwelling- 
houses was the law of 1910 establishing a State hous- 
ing fund to promote the construction of small houses 
for people of moderate means, regardless of their occu- 
pation. The fund was to be used in part to guarantee 
mortgage loans granted to building societies or the 
communes and in part for direct building loans at low 
rates of interest. The advantages of this law were 
made use of mostly in the Czech territories where the 
cooperative idea was already firmly rooted especially 
among the workmen. Since 1908 there had existed in 
Austria a limited housing fund for the granting of 

227 


228 CZECHOSLOVAKIA 


direct loans for the buildingy of homes for Government 
employees. 

The expansion of building activities, especially on 
the part of the building societies, was promoted in no 
small measure by two laws of 1911 which offered spe- 
cial relief from taxation to the builders of small houses 
and effective relief from other taxes and assessments 
to building societies. During the World War, Austrian 
housing legislation was confined to a decree known as 
“Tenants’ Protective Decree’? and an ordinance de- 
signed to prevent reduction in the number of dwellings. 
The Hungarian housing laws, excepting the provisions 
for the protection of the tenants, were never very effec- 
tive in the districts of Slovakia and Carpathian 
Ruthenia. 

Czechoslovak housing legislation can be divided into 
three groups: The first contains ordinances and laws 
for the protection of the tenants; the second, the ex- 
traordinary housing provisions; and the third contains 
the laws for the promotion of building activity. 


I. LAw FOR THE PROTECTION OF TENANTS 

The chief purpose of the ordinances and laws of this 
group was to limit the right of the owner to terminate 
a lease; then to restrict the right of the landlord to 
raise the rent of the old or the new tenant. The lease 
could be cancelled only for reasons stated in the ordi- 
nance. The rent could be increased only in the measure 
allowed by the ordinance. The guiding principle of the 
older provisions was that the net profits accruing from 
the rent should not be less than the profit received be- 
fore the passage of the Rent Act. By the law of 1920, 


THE HOUSING QUESTION 229 


the landlord received the right to pass on to the tenants 
all the expenses of repairing the house and keeping it in 
good order. 

The general increase of rents allowed by the new law 
is intended to compensate the landlord at least in part 
for the depreciation of the money. However, the old 
Rent Act also contained special provisions in favor of 
the landlords which worked, indirectly, of course, for: 
the good of the tenants, too. Such were the provisions 
prohibiting an increase in the rate of interest charges on 
mortgage loans on rented houses. The loss suffered by 
the landlords through the general abrogation of the pro- 
visions mentioned above is balanced in the new law in, 
such a way that the landlord can in certain cases com-, 
pensate himself at the expense of the tenants. Further- 
more, the new provisions of the Rent Act contain ar-' 
ticles aimed against an improper sale of dwellings. 
The Rent Act originally applied only to small dwellings 
and stores, but was later extended to other dwellings 
and from 1920 to all rented rooms, commercial rooms, 
offices, meeting places, etc. 

Hotels and new buildings, 1.e., houses built after the 
passage of the first Rent Act, have been excluded from 
the “tenants’ protection” from the very beginning. By 
later provisions, railway-owned properties and stores in 
the renowned Czech resorts have also been excluded 
from the “‘tenants’ protection.” Leases can be terminated 
for weighty reasons only and with the consent of the 
court. The law states eleven reasons for which the 
court must give judgment for possession. ‘The lease 
may be terminated at once without an order of ouster 
if the tenant commits waste causing considerable loss 


230 CZECHOSLOVAKIA 


to the owner, or if the house has to be rebuilt on 
orders of the commissioner of buildings. 

The basis for calculating the increase of the rent 
is the rate in force on the 1st of August, 1914, or 
that of the first lease after that date, the so-called “basic 
rent.’ The law of 1920 allowed an increase of 20 per 
cent in the basic rent. By the present law a general 
increase up to 60 per cent is allowed. The increase is 
graduated according to the size and the use of the 
rooms. For new tenants the regular increase is higher 
than for the old lessees. Besides this general increase 
in the rate which is not conditional on the permission 
of the court, the law further permits the landlords to 
raise the rent for any one of four special reasons: (1) 
increase in taxes; (2) increase in the expense of man- 
agement and upkeep; (3) increase in the interest or 
other payments on mortgage debts; and (4) increase 
in the expenses for temporary or extraordinary repairs 
or restoration of the house. The consent of the court 
to the raising of the rent is required only in case the 
owner cannot agree on the rate with the tenant. The 
court decides whether, or in what measure, the increase 
of the rent is permissible, and, on investigation, will 
lower or raise the rent. The consequence of the pro- 
visions regulating the increase of rents is that the 
owners gradually improve their houses at the expense of 
the tenants. 

The sub-tenant enjoys the same protection as the 
tenant against dispossession, and a stronger one against 
the increase in rent. The regulations relating to the 
termination of leases have had the desired results, but 
not so the regulations dealing with the increase of rents. 


THE HOUSING QUESTION 231 


Their effectiveness depends on the cooperation of the 
tenants or subtenants, and consequently they cannot be 
effective when the tenant or subtenant fails to avail 
himself of them. From the point of view of the gen- 
eral welfare the effect of the ‘tenants’ protection” has 
been, on the whole, beneficial. It is now the policy of 
the Government, however, to limit such protection to 
the most urgent cases only. The legislature as well 
as the Government are agreed that the owners of houses 
must be freed from the restrictions imposed on them 
under the extraordinary conditions prevailing during 
and after the war. 


II. Tue ExTRAORDINARY HousInG PROVISIONS 


It was foreseen that, in consequence of the World 
War, there would be a general shortage of housing 
accommodations during the war, and there were no 
means for making proper preparations to prevent such 
a, calamity. The end of the war was sudden, demobi- 
lization was carried out speedily, and the demands of 
the public administration of the new State caused a 
considerable shifting of the population. During this 
general movement of the population there was in some 
towns such a shortage of housing accommodations that 
extraordinary measures had to be taken to prevent the 
destruction of public order. Meanwhile such measures 
had to be applied by which the most economical use 
could be effected of all rooms in buildings already 
standing which were suitable for dwellings. By the 
ordinance of January 22, 1919, and later by the act of 
October 30, 1919, municipalities suffering from a con- 
siderable shortage of housing accommodations were 


232 CZECHOSLOVAKIA 


authorized to take over unused rooms for the housing 
of persons whose stay in the community was necessary 
for the public welfare, or who were domiciled there. 
Under these provisions unoccupied residences were 
taken over and used as dwellings, or for storage, com- 
mercial, manufacturing, farming, or studio purposes. 
When a person had more than one dwelling, the one 
which he did not use was taken over for occupation. 
Beside this, parts of large dwellings were also taken 
over in some cases. The municipalities were not al- 
lowed, however, to take over rooms used for educa- 
tional purposes or in which artistic or other valuable 
collections were displayed, or rooms of artistic or his- 
torical value. The owners whose rooms had been taken 
over were compensated to the full amount of the rent. 
In accordance with these legal provisions tenants gladly 
rented such rooms which could be taken over as dwell- 
ings. In this way the housing accommodations were 
considerably enlarged. In Prague and its suburbs alone 
the number of dwellings thus acquired approximated 
5,000. The number of the available rooms was ex- 
hausted very soon, however. The law providing for 
the taking over of unused rooms expired June 30, 1921, 
by limitation; by that time the foundations had been 
laid by special laws for the development of building 
activity. 

The laws limiting the freedom of migration, namely, 
those of April 1, 1919, and of March 17, 1921, pursued 
the same aims as the law providing for the taking 
over of unused rooms by the muncipalities. In some 
towns where the shortage of housing accommodations 
was acute and the increase of population unusually 


THE HOUSING QUESTION 233 


large, only such persons were allowed to move in, up 
to the end of 1922, as were obliged to live there because 
of their profession, while other people could settle 
there only after having obtained official permission. 
The act of July 11, 1922, forbids the combination of 
two or more dwellings, hitherto separate, into one; for- 
bids the possession of two or more dwellings; empow- 
ers the district authorities to compel the house-owner 
to rent rooms hitherto unrented which are suitable for 
dwellings; and provides that rooms may not be used 
for other than dwelling purposes save under an official 
permit. The law gives to the municipalities the right 
to control leases. The chapter of the law providing for 
dwellings for Government and railroad employees is of 
special importance. 


III. LAws For THE PROMOTION OF BUILDING ACTIVITY 


After the World War, the building industries in 
Czechoslovakia were in a very unfavorable situation. 
As early as the beginning of 1919, the building costs 
were on, the average four times higher than before the 
war, and at the end of 1919, ten times higher, while 
the income from the old houses as well as the new 
ones was, owing to the provisions of the Rent Act, al- 
most on the same level as before the war. Building en- 
terprises became the most unprofitable and unsafe. It 
was clear from the very beginning that building activity 
could not progress without public help. The Govern. 
ment therefore decided to grant financial assistance 1:. 
the form of loan guaranty to building enterprises. BP, 
the Act of May 23, 1919, and later by the Act of Febr: » 
ary 20, 1920, the amounts of 5 and then 25 million 


234 CZECHOSLOVAKIA 


crowns were set aside for buildings to be erected in 
I9I9 or 1920. The money was to be used chiefly in 
aid of building societies in the form of Government 
guarantee of loans secured by a second mortgage on the 
house. The Government bound itself to the creditor of 
the guaranteed loan to pay the interest and amortiza- 
tion charges on the loan, if the rent of the house should 
not be sufficient. The Government, however, reserved 
for itself the control of the rent. The net result of 
both these laws was on the whole very slight. Demands 
made especially by the building organizations for Gov- 
ernment assistance to private building enterprises were 
met by the Act of March 19, 1920, which allotted 250 
million crowns in the form of subsidies for the erection 
of houses with accommodations for at least four fami- 
lies. The subsidy amounted to 40 per cent of the build- 
ing costs. But this law failed also owing to the diffi- 
culties in getting the remaining 60 per cent not covered 
by the Government subsidy, and to the continual in- 
crease of the building costs in 1920. 

Government assistance to building enterprises was 
not limited, however, to financial support only. Thus 
the laws providing relief for larger towns, passed in 
April and May, 1919, prescribed more economical and 
therefore less costly ways of building. By the Act of 
March 30, 1920, a total exemption from the house tax, 
rent tax and all surtaxes was granted to all new build- 
ings erected by municipal corporations for a term of 20 
years, and if the building had at least four dwellings, 
a permanent reduction amounting to one-fifth of the 
tax for the entire life of the house. The building 
activity of the communes and societies was stimulated 


THE HOUSING QUESTION 235 


by the Act of December 17, 1919, providing for the 
taking over of land for the erection of dwelling houses 
or public buildings. The activity of building enter- 
prises was also quickened by various administrative 
orders and decrees especially by a reduction of railroad 
transportation rates for building materials, by a low- 
ering of the prices of lumber, and by the control of 
the prices of other building materials, etc. However, 
in spite of all these laws and provisions for its promo- 
tion, the building activity did not keep pace with the 
shortage of housing accommodation and the need of 
keeping the building trades employed. In 1920 the 
cost of building was 16 times higher than before the 
war. The cause was, in the first place, the rise in the 
cost of living, the increase in wages, and the higher 
prices of building materials. The increase was caused 
in part by inefficiency in the production of building ma- 
terials. The housing problem became so serious that 
the Government and the legislative bodies had to seek 
new ways for its solution. Two laws were passed: 
The law of March 3, 1921, and that of March 11, 1921, 
to stimulate building activity. The first law offered 
tax exemption to the builders of dwelling houses. In- 
dividuals paying the income tax or companies paying 
the profit tax were allowed to deduct 70 per cent of 
the construction costs of the new building from the 
basic taxable amount. Large industrial concerns took 
advantage of these savings on taxes in the building of 
new dwelling houses. The law of March 11, 1921, sup- 
plemented by the law of January 27, 1922, extended 
the right to acquire land under eminent domain to 
all builders of dwelling houses or business buildings. 


236 CZECHOSLOVAKIA 


The compensation for the land so acquired was to be 
based on the actual value of the land. The administra- 
tive officials directed the procedure for the acquisition 
of the land and determined the compensation to be paid. 
Arbitration courts were established for the settlement 
of wage disputes and other controversies in the build- 
ing industry arising from the labor contracts, and for 
the regulation of the working conditions, especially in 
extraordinary cases not contemplated by the labor con- 
tracts. The employers were not allowed to dismiss 
workmen and the employees as well as their organiza- 
tions were forbidden to strike while the court of arbi- 
tration was considering the matter in dispute. These 
regulations of the building industry were intended to 
stabilize wages and the working conditions. In a sim- 
ilar way the law provided for the establishment of price 
boards which were to fix the prices of building mate- 
rials in order to put a stop to the continuous increases 
and work toward the stabilization of prices. The law 
of 1921 empowered the Government to obtain for the 
promotion of building activity the amount of one bil- 
lion crowns by a lottery loan and to provide for the best 
employment of the proceeds. The Government was 
specially authorized to make use of 50,000,000 crowns 
from the proceeds of the lottery loan for the building 
of houses for Government employees. 

As regards the financial assistance to be granted to 
building enterprises, the law enumerates six different 
kinds of such assistance: The guaranty of a loan; Gov- 
ernment contribution toward the interest and amorti- 
zation of the loan (in five years from 4 to 2.5 per cent 
of the building costs); the combination of the Gov- 


THE HOUSING QUESTION 237 


ernment guaranty with a direct loan for the completion 
of the buildings started in 1919 and 1920 by munici- 
palities or cooperative societies; finally, a contribution 
of 60 per cent of building costs, partly for temporary 
buildings, partly for buildings being put in order for 
occupancy, and partly for building space hitherto unoc- 
cupied. Houses with small apartments measuring at 
the most 80m? of floor space will be exempt from the 
property tax and all other surtaxes for 50 years, other 
buildings for 20 years. In accordance with the law, 
assistance may be given to any builder and particularly 
to private persons. Until the end of August, 1922, 
assistance had been granted to the builders of 767 
apartment houses with 6,814 apartments, and of 5,489 
private houses with 6,342 dwellings, estimated to cost 
1,197,387,058 crowns. At the end of 1921 there were 
completed and occupied 510 apartment houses with 
6,788 apartments and 15,251 rooms, and 2,099 private 
houses with 2,579 dwellings of 6,640 rooms, with a 
building cost of 713,264,950 crowns. Besides that, at 
the end of 1921, there were in the process of construc- 
tion 220 apartment houses with 2,344 apartments of 
5,083 rooms and 2,093 private houses with 2,480 dwell- 
ings of 7,131 rooms, estimated to cost 490,814,160 
crowns. 

In 1922 the construction was begun of 349 apart- 
ment houses with 3,162 apartments and 3,013 private 
houses with 3,407 dwellings, estimated to cost 575,- 
962,037 crowns. At the end of 1922 the guaranteed 
loans on buildings already completed or in process of 
construction aggregated 1I,390,000,000 crowns. The 
annual financial burden to the State from the guaran- 


238 CZECHOSLOVAKIA 


tees amounts to about 100,000,000 crowns. By this 
contribution the Government has succeeded in mobi- 
lizing financial means amounting to more than 1,780 
million crowns. Financial assistance to the building 
enterprises will decrease as the cost of building de- 
creases. At the end of the 1922 building season the 
building costs were only eight times as high as before 
the war. It is expected that the continual decrease in the 
building costs will induce an extensive building activ- 
ity even without Government support. The Govern- 
ment has not only promoted the building activity by 
its assistance to the municipalities, the building societies 
and private persons, but has also built houses for its 
own employees. Thus far the Government has built 
118 apartment houses with 1,094 apartments and one 
dormitory with 118 beds at a cost of 152,371,000 
crowns. Work has been commenced on the building of 
II4 apartment houses with 1146 apartments, to cost 
120,000,000 crowns. These figures, however, do not 
include the houses and dwellings which some of the 
branches of the public administration, especially the 
railroad and the financial administration, have built for 
their employees. 

In promoting the building activity as well as in build- 
ing houses on its own account, the Government has al- 
ways insisted that the new dwellings should offer all the 
comforts and conveniences provided by the modern art 
of the builder. 


XIX 
CRIME 


Dr, Aucust MImICKA, PRoFESsoR AT THE CHARLES UNIVERSITY, 
PRAGUE 


In order to form a correct idea of the relative fre- 
quency of crime in the territories now forming the 
Czechoslovak Republic, it 1s necessary to investigate 
the conditions which existed there before and during 
the war and then to study the situation after the war. 

Such a study obviously must be based on reliable 
statistical data. The State Statistical Bureau has col- 
lected statistics only for the Czech territories (Bohemia, 
Moravia and Silecia); the data for Slovakia and 
Ruthenia have not yet been compiled. According to 
the official census of February 15, 1921, the Czech 
territories exclusive of Slovakia and Carpathian Ru- 
thenia had a population of 10,005,734. 

Experience has demonstrated that after the outbreak 
of a war crime usually shows a decreasing tendency. 
That was the case in the Czech territories as early as 
1914, although only a few months of that year had 
been taken up by the war. Table I shows a decrease 
in criminal cases (felonies and misdemeanors) from 
32,043 in 1912 and 34,465 in 1913 to 33,154 in I914 
and to 26,595 in 1915. ‘There is also a corresponding 
decrease in the number of persons indicted and con- 

230 


240 CZECHOSLOVAKIA 


victed. In 1912 there were 14,348 indicted of whom 
11,281 were convicted (of these 8,054 of felony) ; in 
1914 there were only 13,003 indictments and 9,776 con- 
victions (6,678 of felony) ; and in 1915 there were but 
11,541 indictments and 8,177 convictions (6,362 of 
felony). In petty offenses a similar decrease is to be 
observed in the years 1914 and 1915 as shown in 
table IT. 


I. PROCEEDINGS IN COURTS OF FIRST INSTANCE 


$ 2 2 8 2S 

a] © o ° = v4 

x = au antes ae: 
is ° oe 3 £ = sy og e 
§ S 68 8 S53 SES 
> ZA Zs heey ae Zow 
BOLO Mla ese 32,043 82,210 14,348 11,281 7,014 
Tes tase Gee 34,465 86,652 14,873 11,837 8,054 
TDLA ees 33,154 79,214 13,003 9,776 6,678 
FOTS ce ee eats 26,593 76,028 11,541 8,177 6,362 
WIGS Meine cae 27,704 84,287 12,289 8,581 6,124 
OLAS Potcuiee as 40,691 130,461 17,470 11,876 8,903 
TOIB ie eee 49,517 187,449. 25,153 16,673 13,509 
TOIGT. Sey cons 60,166 220,349 33,004 20,776 17,253 
1OZO ee ah eras 96,959 253,710 50,204 32,991 26,640 


II. PROCEEDINGS IN THE COUNTY COURTS 


No. of cases 


Total No. prosecuted by No. of persons 

Year of cases private parties convicted 
LOLS ate wee 326,017 83,391 150,191 
LOLS 334,011 84,409 153,064 
TOT ATO aie 206,171 67,111 136,725 
TODS rie ae: 269,866 54,504 120,700 
TOLG tye 245,328 32,625 109,699 
TQP7 We es 261,717 36,360 II1I,066 
TOURS eis en 215,742 42,785 86,677 
TOTO eee eee 268,463 62,904 110,213 


IOZOR ore 295,722 75,204 133,027 


CRIME 241 


Many criminologists and sociologists who have 
studied the relation between war and crime have tried to 
explain the interesting fact that the outbreak of war is 
usually followed by a decrease of crime. It might be 
expected that in a war when economic values and even 
human life are considered of little importance, crime 
would increase rather than decrease. The decrease of 
crime in war as shown by official statistics, is often 
explained, especially by German writers, by the assump- 
tion that war has an ennobling influence on man, as it 
turns all thoughts and efforts of the citizens to the noble 
struggle for the victory of the fatherland. 

In the “Zeitschrift fuer die gesamte Strafrechtswirt- 
schaft” (vol. 43, page 402), Professor Hippel explains 
the decrease in the number of persons convicted of 
crime in Germany in 1914 as follows: ‘The decrease 
is explained by the five months of war. It shows a 
vigorous people inarms. The men fit for military serv- 
ice are at the front, while discipline and order rule at 
home.”’ 

However, such an explanation will not hold good 
for the territories inhabited by Czechoslovaks who felt 
no enthusiasm for the war. To me such an explanation 
of the decrease in crime seems rather idealistic: I think 
that we must look for a more sober explanation. Large 
numbers of men of the- age which, in normal times, 
furnishes the greatest number of criminals, are called 
to arms and thus forced into a life which affords far 
less opportunity for the commission of criminal of- 
fenses. When, however, offenses are committed, they 
do not appear in the official statistics because they are 
punished by military courts and consequently are not 


242 CZECHOSLOVAKIA 


included in the official statistics of crime. Moreover, 
criminals under indictment are also called to the colors, 
and judges, too, must join their regiments. Thus many 
trials have to be deferred. The fact that an offense has 
been committed is therefore not shown in the statistics 
for the year in which it has been committed, but only 
in the statistics of some later year. 

The decrease in the first two war years was followed 
by a marked increase in crime. This increase became 
evident as early as 1916, when there were 27,704 cases, 
12,289 indictments and 8,581 convictions (6,124 of 
crime). In the following years the increase was still 
greater: In 1917 there were 11,876 convictions (8,903 
of crime), in 1918 16,873 convictions (13,509 of 
crime). As can be seen from these figures, the number 
of offenses committed in the years 1919 and 1920 was 
much larger than in the prewar years. 

This larger postwar increase of crime in the Czech 
territories, especially after the Revolution of 1918, 
would have to be considered a serious menace if the 
abnormal postwar conditions were not taken into ac- 
count. There are certain general causes which are re- 
sponsible for the increase of crime after every war, and 
which have doubtless brought about an increase in 
crime in other countries also. These causes are naturally 
the more effective the longer the war has lasted. The de- 
moralizing effects of the war both at the front and at 
home, the low passions unleashed by the war, and the 
general decline in the valuation of human life are chiefly 
responsible for the increase in crime. In the victorious 
countries, too, we may observe a spiritual exaltation 
which sometimes reaches the stage of frenzy and, when 


CRIME 243 


stimulated by alcohol, frequently finds expression in 
deeds of violence. It is a well-known fact that after 
the Franco-Prussian war of 1870-71, the number of 
crimes against the person and crimes of violence in gen- 
eral increased considerably in Germany. 

Any conclusions in this direction, with regard to the 
present, can be made only on the basis of a detailed 
classification of the total number of crimes and offenses. 
The publication of the State Bureau of Statistics con- 
tains, however, only a partial classification, that is, 
only a classification of those penal offenses which are 
included in Tables III (crimes) and IV (petty of- 
fenses). (See page 244.) 

Those committing two or more delicts are counted 
for each offense. 

If we divide the crimes included in Table IIT into two 
major groups, one consisting of crimes against the per- 
son (crimes against chastity, murder, infanticide, man- 
slaughter, and mayhem) and the other of crimes against 
property (arson, larceny, embezzlement, robbery, and 
fraud), we see at once that the offenses of the first 
group show, in some cases, a remarkable decrease as 
compared with the number of cases before the war, 
especially in the case of mayhem, of which there were 
933 and 846 cases in the years 1912 and 1913, but only 
208 and 328 in 1919 and 1920. In the case of crimes 
against property, however, with the exception of arson, 
a marked increase is to be noted. 

The greatest increase is in the case of larceny and 
receiving stolen goods. The causes of this increase are 
to be found in the demoralization of the people by the 
long war and the economic crisis and unemployment. 


CZECHOSLOVAKIA 


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CRIME 245 


These causes have doubtless brought about an increase 
in offenses against property in other countries also. 
But they alone cannot explain the large increase in 
theft after the war in the Czechoslovak territories as 
compared with the number of thefts before the war. 
Here the explanation lies in a peculiar modification of 
the criminal law. Under the law, the value of the 
stolen goods determines the nature of the offense, 
whether it is a felony or merely a misdemeanor. If the 
value of the stolen article is over 200 crowns, or if the 
act is done under certain aggravating circumstances de- 
fined by the law, in which case the value may be only 
over 50 crowns, the offense is classed as grand larceny. 
With the decrease in the value of the Czechoslovak 
crown the prices of commodities have increased many 
times, but the law defining the difference between grand 
and petty larceny has not been changed. That ex- 
plains the large increase during the years 1919 and 
1920, when the number of the cases of grand larceny 
was almost eight times as great (21,389) as in I9QI3 
(2,750), while the number of petty thefts was less 
than twice as large as in 1913 (56,303 against 38,575). 

Austria-Hungary had passed strict laws to stop war 
profiteering. After the war the penalties had to be 
made more severe as the offenses were on the increase. 
This was accomplished by special statutes (Law of 
October 17, 1919, Nos. 567-568 of the Collection of 
Laws and Government Decrees, and Law of March 
18, 1921, No. 129) modifying not only the substantive 
law (increase of penalties, exclusion of extraordinary 
leniency or conditional conviction, possibility of con- 
fiscation of property, hard labor), but also the rules of 


246 CZECHOSLOVAKIA 


procedure. For the prosecution of war profiteers spe- 
cial tribunals were established consisting of professional 
and lay judges, the latter being selected from a list 
of persons submitted by trade unions, or by organiza- 
tions of different groups of producers and consumers. 
This was done in order to place the prosecution of the 
war profiteers in the hands of the people themselves. 

This arrangement has not been very satisfactory in 
practice. The lay judges especially have been criticized 
for having no interest in the prosecution, or showing 
partiality in their decisions, or hampering the adminis- 
tration of justice by non-attendance at trials. Thus 
these special courts have failed to win the confidence 
of the public; the producers and the merchants complain 
of unjustifiable persecution, while the consumers charge 
the courts with being too lenient in prosecuting the war 
profiteers. 

According to the statistics compiled by the Ministry 
of Justice for the Czech territories (Bohemia, Moravia 
and Silesia) 100 complaints of war profiteering crimes 
were filed in 1921, and about 7,400 complaints of mis- 
demeanors, 23,000 complaints of petty offenses punish- 
able summarily by the courts and about 16,000 com- 
plaints of petty offenses punishable by administrative 
authorities. Only 18 of the criminal profiteers were in- 
dicted for a felony, and 3,500 for a misdemeanor, but 
less than 50 per cent of the offenders were convicted. 
Summary convictions for petty offenses of profiteering 
numbered only a little more than 3,000. 

The small number of 18 indictments for felony shows 
that the law did not reach the big profiteers but only 
their petty imitators, against whom it was easy to obtain 


CRIME 247 


evidence. The decreasing number of complaints in 
cases of war profiteering, as well as of convictions as 
compared with acquittals, shows that with the return 
of normal economic conditions and the restoration of 
competition the laws against war profiteering are grad- 
ually losing their importance. Modification of these 
laws is being considered, and the time of their repeal 
is not far off. 

The young Republic had to protect its citizens not 
only against wild speculation in necessaries, but also 
against the illegal exportation of goods needed at home. 
A law against clandestine exports was passed in March 
18, 1920 (No. 188 of the Collection of Laws and 
Government Decrees) ; in point of severity it may be 
compared with the laws against war profiteering. To 
safeguard the confidence of the public in the currency, 
the Parliament passed a new law providing for the 
punishment of persons guilty of counterfeiting money 
or securities (Law of May 22, 1919, No. 269 of the 
Collection of Laws and Governmental Decrees). 

The obsolete criminal laws of former Austria require 
an early revision. A revision is also necessary to pro- 
vide a uniform code of law for the Republic, for the old 
Hungarian laws are still in force in Slovakia and 
Carpathian Ruthenia. By various measures the Gov- 
ernment has endeavored to modernize the penal system 
and to establish new institutions for the reformation 
of the criminals. Thus, by the Law of October 17, 
1919 (No. 564 of the Collection of Laws and Gov- 
ernmental Decrees) a probation system was introduced 
and conditionai suspension of the sentence was author- 
ized. 


248 CZECHOSLOVAKIA 


The Government also intends to establish juvenile 
courts modeled on those originated in the United States 
of America which have been adopted by many European 
countries. 

A thoroughgoing reform of the penal code which 
will establish a modern and uniform system of crim- 
inal jurisprudence throughout the Republic is now in 
the process of preparation. 


INDEX 


Agriculture Agriculture production, grains, 
— climate, 12 TIO“ TTY 
—crops, 20 ——land reform and, 49 
——renting system, 48 ——malt products, 113 
— education, 18, 19 —— prices, disparity of 
— economic conditions, 13, 14 ———world, 30 
—— cooperation, 17 enor ery eA SALON be 
——credit, 17 — — statistics, 22-27 
—— depression, 30, 31 —— value of, 28, 20, 30, 31 
— —Jland ownership, 13, 16, 43, —soil, 12 

44, 45, 46 —-—crops, 12 
———rent and, 48 —— improvement, 13 
——w—tenant and, 47, 48 — war and, 30 
—— market, 14, 15, 30, 31 —-— labor shortage, 30 
—— organization, 17, 18 ——— money depression, 30 
——self-help, 17, 18 — water power in, 81, 82 
——tariff, 16 Area 
—— wages, I5 — arable land, 19 
— industries, 20, 21 — coal, 67, 88 


— division of 


——yield in, . 
———prewar, 22-27 cy af ere 73, 43) 44 
i eae eta t0ne Sly ELD) Witenes early history 7 8 
TTEMit2 fice 

—land (see also Land) a Aco hi 
PP oe ate ownership, 39, 40 
memset! , —§in miles, 1 
Le Sie Ae — State control, 54 
——w—and emigration, 46 Banking, 166-175 
——w— and tenant class, 47 Banks 
— population (see under Popu- _ assets, 173 

lation) — character of, 172 
— production, I2-32 — development 
——area, \19 ——crisis of 1873, 167 
—-— depression, postwar, 30, 31 ——deposits, 170 
— — fertilizers, 30, 31, 106 —-—eeconomic centralism, 166, 
—— foreign trade and, 31, 110, 168 

III —w— history, 166, 167 


249 


250 


Banks, development, industrial 
prosperity and, 168 

——present conditions, 169 

——war and, 169 

—economic life and, 171, 172, 
174 

—losses, 175 

— profits, 174, 175 

— transactions 

— —bonds, 174 

——credits, 172, 174 

—— investments, 173 

—-—reserve, 173 

—— securities, 174 

Bohemia 

— area, 2 

—-births, 4, 5 

— deaths, 4, 5 

— marriages, 4, 5 

—population, 2, 3 (see also 
under Population) 

—— emigration, 6 

—race in, 9 


Child Welfare (see under So- 
cial Welfare, Child) 

Civil Code (see under Social 
Welfare, Child) 

Climate (see under Agricul- 
ture) 

Coal, 67-75 

— area, 67, 68, 69 

— fields 

—-— location, 71 

—-—and water power, 80, 82 

—export, 71-75 

— import, 74, 75 

— industry 

—-employment, 69, 70 

—and lignite, 67, 68, 69 

— quality of, 71, 73 

— output, 69, 70, 71 

Commercial policy (see under 
Policy) 

Cooperation (see under Popu- 
lation, Agricultural) 


CZECHOSLOVAKIA 


Co6éperative bakeries, 101 

Crime, 239-248 

— classification, 243, 244 

— decrease 

——causes, 241 

——war and, 239, 240 

— increase 

—— causes, 242, 243, 245 

—— postwar, 242 

—-—war profiteering, 246 

— legislation 

—— counterfeiting, 247 

—+—,crlme increase and, 245 

—— juvenile courts, 248 

—— revision, 247, 248 

——war profiteering, 246, 247 

Currency, 176-191 (see also 
under Money; Finance) 

— circulation 

— — fiduciary, reduction of, 179 

—— limitation of, 181, 182 

— conditions 

—-— internal, 181 

—-— postwar, 176, 177 

— — reorganization, 177, 178 

— exchange rate, 183, 184, 185, 

186 

—over-valuation, 186, 187 

——results, 189, I90 

— prices 

——decline, 181 

—-—- external causes affecting, 

LO2heras 

—-—- increase, 170, 180 

— —— Government control, 180 

— stabilization of, 190, 191, 198 

— stamped notes, 178 

—— State certificates, 179 

—-— State loan, 178 

—under-valuation, 186, 187 

——results, 187, 188, 189 

Customs (see under Policy, 
Customs) 

Czechoslovak 

—emigration, 46 

—race, 7, 8 

— — foreign, 8, 9 


INDEX 


Czechoslovak race, 
dynasty and, 45 

—— industry and, 89 

—— migration, 8 

—religion, 9, 10, II 

— Republic 

— — agricultural 
28 

—— divorce law, 5 

——economic policy, 32 

—e— education, 18, 19 

—-— formation of, I 

—— geographical situation 

—e— — and foreign trade, 123 

—— land 

—~«—— arable, I9 

—-—-— ownership, 43, 44, 45 

—-—--— land control act, 51, 

52, 53 

—-—-——- tenant class, 47 

—— population, 2, 28 

———decrease, 3 

—— — increase, 3 

—-—-— movement, 4 

—— production, 12-19 

— —— agricultural, 19-32, 123 

———coal, 67-75 

—-—w—depression, 30, 31 

——— foreign trade, 31 

——— forestry, 33-42 

——— industrial, 123 

——— prices, 30, 31 

———value, 28-31 

—— self-help, agrarian organ- 
ization, 17, 18 

PG TERY wealth, 20, 38, 39, 40, 67- 
75, 76 (see also under 
Industry) 


Hapsburg 


independence, 


Divorce law, 5 


Economic conditions 

— banking (see under Banks) 
— coal 

—— export, 7I, 72, 73 

—— import, 74 

— cooperation, 17 


251 


Economic conditions, credit, 17 

—education and, 18, 19 

—land ownership, 13, 16, 43, 
44, 45, 46, 63 

——rent, 48 

——tenant class, 47, 48 

—land reform, 43-66 

——credit system and, 60, 61 

—— results of, 63, 64, 65, 66 

— markets, 14, I5 

— postal service, prewar, 13 

— postwar, 30, 3I 

—railways, prewar, 13 

—tariff, 16 (see also under 
Policy, Customs) 

— telegraph, prewar, 13 

— water-power and, 81 

— waterways, 14, 16 

Education 

—agrarian, 18, I9 

— forestry, 19, 41 

Electricity (see under Water 

Power ) 

Emigration, 6 

—land ownership and, 46 

Export 

— coal, 71, 72, 73, OI, I14 

— Commission, and Import, 128, 
129 

— expansion, 120 

— foreign trade control, 
131, 132 

— increasing, 125 

— manufactures, 95, 96, 122, 123 

— minerals, 91, 92, 96 

— permit system, 128, I29, 130 

— products 

—— agricultural, 110, III, I12, 

123 

—— chemical, 118 

— —electrotechnical, 114, II5 

— -— forestry, 39, 91 

— — industrial, 109, TII0, 

——w— alcohol, 97, 98, 112 

——— beer, 99, 113 

——w— ceramics, 102, 117 

——-— chocolate, 99 


130, 


123 


252 


Export products, industrial, ex- 
plosives, 107 

——— flour, IOI 

— —— glass, 112, 116 

——— leather goods, 108 

———malt, 99, 113 

—-—+«— mineral water, I13 

——— sugar, 96, II2 

———textiles, 109, I16 

—— paper, 104, 117 

——-—-graphic art, 105, 118 

———printed goods, 106, 118 

—— wax, 107 

—-— wood, 103, 104 

— — — furniture, 103 

———barrels, 103 

—raw materials, 91, 122, 123 

—sales organization, 124 

— semi-manufactures, 122, 123 

—timber, 39, 114 


Finance (Government), 192-200 

— budget of 1921, 195 

——of 1922, 196 

——of 1923, 106 

sae Ob 1024; 107 

—of communes, 196 

—credits and, 194 

—-— Austrian war loan and, 195 

—crisis, 192 

— liabilities, 199, 200 

—loans, 193 

— public debt, 199 

— taxes, 195 

—value fluctuations and, 1093, 

194, 198 

Fisheries, 22 

Foreign Trade, 
also Export) 

—balance, 119, 120, 183 

— Bureau, 130 

— control, 130, 131, 132 

—-—jin neighboring states, 131 

— development, 119 

— geographical situation and, 

123 
— politics and, 120 


II0-126 (see 


CZECHOSLOVAKIA 


Foreign Trade, rate of exchange 
and, 135, 136, 183 

—sales organization and, 124, 
125 

— syndicates, 129, 130 

—transportation, 125, 132 

— — difficulties, 120 

Forestry 

— administration, 35, 36, 37, 38, 
40, 41 

— — afforestation, 41 

——seed selection, 41 

—-— State control, 59 

——yield and, 35-38 

—industries, 39 

— production 

——herbs, 39 

——seeds, 39 

——tannin, 39 

— — timber 

——w— consumption, 38, i14 

“Sarre CX DORL, 38, 39, 114 

—— value of, 28, 29 

—reform, 40, 41, 42 

—schools, 18, 41 

Forests 

—accessibility, 36 

—area, 33 

— coniferous, 34 

— deciduous, 34, 35 

— foreign species, 35 

— growth 

—w—dannual, 36, 37 

—— management and, 36 

—— soil and, 36 

— low, 34 

—medium, 34 

— mixed, 34, 35 

— State ownership, 39, 40, 59 

— yield, 35, 36, 37; 38, 39 


Glass (see under Industry) 
Hapsburg dynasty 


— Czech emigration and, 46 
—-—race and, 45 


INDEX 


Hapsburg dynasty, latifundia 


and, 44, 45 

Housing, 227-238 

— legislation, 227 

——development, 227, 228 

——extraordinary provisions, 

231, 232, 233 

—— promotion of building 

——-— appropriation, 236 

——— economy, 234, 235, 236, 
Zot ; 

—— — financial assistance, 233, 
234, 235, 230 

——results, 237, 238 

Husnik, Jacob, 105 


Import 

— Commission, and Export, 128, 
129 

—exchange rate and, 136 

— foreign trade control, 
Pareies 

— manufactures, 96, 122, 123 

—permit system, 128, 129, 130 

— products 

—— agricultural, 113, 123 

—-— industrial, 106, 109, 113, 

ise LLS tLt0, 123 

—raw materials, 9I, 107, II0, 
1133-1101 22, vl23 

—— purchase of, 123, 124, 136 

—semi-manufactures, 122, 123 

Indemnity bank, 58 

Industry, 89-109 

— agricultural, 21-32 

—animal, 20 

— bakeries, codperative, I01 

— brewing, 96, 98, 99 

—-—mmachinery, 94 

— chemical, 106, 107, 118 

—coal (see also Coal) 

—— employment, 69, 70 

— — export, 71, 72, 73, OI 

——-— import, 74 

—— wages and, 75 

—dairy products, 99 

— depression, postwar, 30, 31 


130, 


253 


Industry, distilling, 96, 97, 98 

—electrotechnical, 94, 95, 115 

— engineering, 94 

— exports 

—— manufactures, 95, 96 

—-—raw materials, 91 

— fisheries, 21, 22 

— food products, 99, 100, 101 

— forestry, 39 

—glass, IOI, 102, 116, 117 

— graphic art, 105, 118 

—hat, 108 

— historical conditions, 89, 90 

—leather, 107, 108, 117 

— malt, 99 

—manufacturing, 94, 95, IOI, 
102, $03, 105, 107,/116) 117, 
118 

— materials, raw, 91 

— milling, I00, Io 

— mineral, 91, 92, 93 

— paper, 103, 117, 118 


_—-— history, 104 


—— output, 104 

—— products, 105, 118 

— peasant emancipation and, 90 
— power plants, 96 

— printing, 105, 106, 118 

— resources, natural, 90, 9I, 92, 


3 
— sugar refining, 96, 97, I12 
— textile, 108, 109, 116 
— water-power in, 76-88, 95 
— weaving, 108 
— wood, 103 
—— pulp, 104 
— yield, prewar in, 22-27, 98 


Klié, Karel, 105 
Krizik, Frant., 78 


Labor 

— in industry, 94 

——coal, 69, 70 

— legislation, 201-209 

—— child-, 205 

—— eight-hour day, 203, 204 


254 


Labor legislation, factory coun- 
cils, 209 
— — in home industries, 205, 206 
——w— mediation committees, 
206 

—-— mining, 207, 208 

——w— councils, 208 

— — — profit-sharing, 208 

——night work, 204 

—w—unemployed, Government 
aId 210) 21122 7213 

—— for women, 204 

—-—for young persons, 205 

— shortage, 30 

— wages, and commercial pol- 


icy, 137 
Land 
— Control Act, 51-55 
—— office, 51, 57 


— — — duties, 62, 63 

——-— functions, 52, 53, 57 

— —— Supreme Administrative 
Court and, 57 

— Hapsburg dynasty and, 44, 45 

— ownership, 43, 44, 45 

—-—land control act and, 50, 

51, 52 

—— migration and, 46 

——tenant class, 47, 48 

—reform, 43-66 

—— allotment, 58, 59, 60, 64, 

6 


5 

——credit and, 60, 61 
—w— forced leases, 64 
—w—land control act, 51-55 
———compensations, 55, 56, 

57, 53 
—— — expropriations, 52-56 
——land values and, 55, 56 
—-—-principles, 50 
—-—reasons for, 43, 44, 45, 46 
——-—economic, 48, 49 


——— social, 50 
——results, 63, 66 
Latifundia 


— expropriation of, 56 
— origin of, 44 


CZECHOSLOVAKIA 


Law 

— compensation, 65 

— divorce, 5 

—of entail, 44 

—land control 
Land) 

Lignite (see under Coal) 


(see under 


Market conditions, 14, 15, 30, 
31 (see also under Agricul- 
ture ) 

Masaryk, T. G., 202, 203 

Money, 30, 31 (see also under 
Currency) 

—depression, 30, 120, 128, 130 

—and foreign trade, 120, 121, 

127,2120,.130,0036 

— protection, 129, 130 

Moravia 

—area, 2 

— births, 4, 5 

— deaths, 4, 5 

— marriage, 4, 5 

— population, 2, 3 

—— emigration, 6 

—race in, 4 


Policy 

— commercial 

—— foreign trade control, 130, 
E31; 142 

—— railway tariff and, 152 

——treaties, 152 

———compensation, 132, 133, 

134, 135 

— customs 

—— agriculture and, I 37 

—-— autonomous | tariff, 

135, 136 

—— free list, 128 

—-— frontier lines, 127 

—w— money rates, 127, 128, 135 

——permits, 128, I29, 130 

—— protective tariff, 16 

——railway tariff, 151, 152 


134, 


INDEX 


Policy, financial (see under 
Finance) 

—social welfare (see under 
Social) 

Population 


— agricultural, 15 

—— cooperation of, 17, 18 

——credit system in, 17 

——organization of, 17, 18 

— decrease, 3, I5 

—density, 2 

— distribution, 2, 6, 7, 9, 10, ITI, 
28 

— growth of, 3 

—w—jin industrial centers, 3, 15 

— movement of, 4, 5, 28 

——emigration and, 6 

———land ownership and, 46 

Postal Service, 156-165 

— administration, 163, 164, 165 

— Checking Bureau, 163 

— mail 

——air, 158 

—— automobile, 158, 159, 164 

—— franking privilege, 165 

—w—rail, 164 

— organizaton, 156, 157, 158 

— prewar, 13 

—telegraph, 13, 159, 164 

——cable, 160, 161 

—-— foreign, 160 

—telephone, 162, 164 

——long distance, 162 

——treaties, 162 

Printing (see under Industry) 


Railways, 138-155 

— administration, 138, 139, 140 
— condition of, postwar, I41 
— electrification, 144 

— fares, 153 

— finance, 154, 155 

— improvement, 142, 143 
—miles, 138, 139, 143 

— Ministry of, 138, 139 

— operation, 138 
—ownership, 138, 139, 140 


255 


Railways, prewar, 13 

—rolling stock, 145, 146, 147, 
148 

—tariff, 151 

—-—agreements, I5I, 152 

—— inland traffic and, 153 

— traffic 

— — freight, 

I51 

——local, 139, 144, 145 

—— passenger, 148, 149 

——regulation, 143, 144 

—type, 140, I41 

Rasingn Dr (577.178 

Reform 

— forestry, 40, 41, 42 

—land, 43-66 

—-—emigration and, 45, 46 

—-—jincreased production and, 


144, 149, 150, 


49 
——land values and, 55, 56 
—w—principles of, 50 
—-—reasons for, 43-46 
——results, 63, 64, 65, 66 
—— State control, 51, 52 
Religion, 9, I0, II 
Republic (see under Czecho- 

slovak) 
Roads, 13 
Ruthenia, 2, 3, 4, 5, 6, 9 


Silesia, 2, 3, 4, 5, 6, 9 

Slovakia, 2, 3, 4, 5, 6, 9 

Social 

— legislation 

—w— influences affecting, 
202 

— welfare 

——child, 220-226 

——housing (see Housing) 

——j insurance, 211, 216, 217, 
218, 219 

—— Ministry, 219 

—— policy, 210-226 

——poor relief, 225, 226 

——unemployed and, 210, 211, 
212, 213 


201, 


256 


Social welfare, war sufferers, 
211, 213, 214, 215, 216 

Soil (see under Agriculture) 

State 

—and agriculture, 16, 29 

— control 

—— foreign trade, 
132 

——land reform, 43-66 . 

—— water-power, 86, 88 

— ownership 

— — forests, 39, 40, 59 

— —railways, partial, 138 

Supreme Administrative Court 

—land reform and, 57 


130,083, 


Tariff (see under Policy, Cus- 
toms ) 

— railway (see under Railways) 

Telegraph (see under Postal 
Service) 

Telephone (see under Postal 
Service) 

Tenant 

—land control and, 51, 52, 53 


CZECHOSLOVAKIA 


Tenant, land ownership and, 47 
—renting system, 48 


Vilim, J., 105 


Water Power, 76-88 

— in agriculture, 81, 82 

— annual flow, 77 

—canals, 77, 78, 83 
—control, 86, 87, 88 
—current, 87 

— development rights, 84 

— distribution, 80, 81, 82, 83 
— fuel supply and, 80, 82 


— geological formations and, 
80, 81, 82, 83 

—hydroelectric plants, 77, 78, 
79, 83, 85 


—in industry, 77, 79 

— main source, 78, 79 

— potential, 85 

—and railways, 144 
—rainfall and, 76 

— reservoirs, 80, 81, 82, 83 
Waterways, 14, 76, 77, 78 
—in foreign trade, 125 





Date Due 


Le 


MAR 


. a 








